program. As the EU Emissions Trading Scheme (EU-ETS) covers only part of domestic carbon emissions, it implies a hybrid … environmental regulation scheme: Each EU Member State must specify additional domestic abatement policies for the sectors that are … not covered by the emissions trading scheme in order to meet its emissions budget under the EU Burden Sharing Agreement …

Three computable general equilibrium models are used to estimate the economic implications of a stylized version of EU …, however, that the distortions introduced by total EU package imply a substantial welfare loss over and above the costs needed …