Under the EU-wide Emission Trading Scheme (ETS), CO2 allowances have thus far been allocated largely free of charge. This paper presents a didactic synthesis on the impact of the ETS and argues that such a cost-free allocation will lead to an increase in electricity prices even when strong...

While the US has pulled out of the Paris Climate Agreement, the European Union is stepping up its efforts to meet the terms of the accord. The EU has set climate targets in order to reduce global greenhouse gas emissions by 2050 and keep the average global temperature increase below two degree...

Understanding the relationship between international trade and CO2 emissions is crucial for designing appropriate measures to address climate change. This article focuses on CO2 emissions as one of the trade flow determinants of the EU countries, along with other factors including remoteness,...