Taking account of sinks credits as agreed in Bonn and Marrakech, this paper illustrates how market power could be exerted in the absence of the US ratification under Annex 1 trading and explores the potential implications of the non-competitive supply behavior for the international market of...

Starting from CO2 emissions data collected during both the production phase and during the lifetime of cars and trucks, we argue that impressive opportunities to reduce emissions can be found in the consumption phase. It is however obvious that energy taxes alone will not lead to a strong...

In this paper we use a simple climate model with endogenous environmental technical change in order to analyse the effects on equity and efficiency of different degrees of restrictions on trade in the market for pollution permits. The model is obtained by incorporating in Nordhaus and Yang...

The Kyoto Protocol stipulates that industrialised countries and countries with economies in transition, i.e. the group of Annex I countries, shall reduce their overall emissions of carbon dioxide and other five greenhouse gases by at least 5 % as compared to their 1990 emission levels. This...

This paper presents an estimation of the cost of reducing CO2 emissions as agreed in Kyoto by Annex I countries. Unlike most of the existing literature, this paper focuses on European Union countries' abatement costs and, using a simple model, estimates the role of each EU country within a EU...

This paper presents an estimate of the costs of reducing CO2 emissions asagreed in Kyoto by Annex 1 countries. Unlike most of the existing literature, this paper uses an Almost Ideal Demand System model for energyproducts to estimate the role of each country within the Annex 1 market. A major...

Most analyses of the Kyoto flexibility mechanisms focus on the cost effectiveness of 'where' flexibility (e.g. by showing that mitigation costs are lower in a global permit market than in regional markets or in permit markets confined to Annex 1 countries). Less attention has been devoted to...

This paper is the concluding chapter of Rights, Rents and Fairness: Allocation in the European Emissions Trading Scheme, edited by the co-authors and forthcoming from Cambridge University Press. The main objective of this paper is to distill the lessons and general principles to be learnt from...

With the release of the verified emissions for installations covered by the EU Emissions Trading Scheme for the first trading year 2005 we are able to compare actual emissions and allowances for each installation. Based on data available for 24 Member States as of January 2007, this paper uses a...

The European Union Emission Trading System (EU ETS) is a landmark environmental policy, representing the world's first large-scale greenhouse gas (GHG) trading program. The coexistence of state actors and top-down processes with stakeholders participation and flexible abatement strategies make...