In the absence of an international agreement on climate policy, unilateral carbon abatement creates two problems: It tends to have a detrimental effect on domestic competitiveness, and it leads to an increase in carbon emissions abroad (leakage). This paper analyses two policies that have...

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 non-competitive supply behavior for the international market of...

The 'Climate action and renewable energy package' proposed by the European Commission in the beginning of 2008 suggests auctioning as basic principle for allocation for the upcoming third trading phase of the EU Emissions Trading Scheme that runs from 2013 to 2020. Overall, it is estimated that...

Ambitious unilateral EU environmental policy has raised concerns about adverse competitiveness implications for European energy-intensive and export-oriented sectors. We analyze the economic and environmental implications of two different measures to address these concerns in the EU Emission...

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...

Die Energiestückkosten sind für die Wettbewerbsfähigkeit der Unternehmen ein entscheidender Indikator im Zusammenhang mit der Energiewende. Dabei wurden bislang die indirekten Energiekosten vernachlässigt. Diese gewinnen aber immer mehr an Bedeutung. Die Berechnungsmethode zur Bestimmung der...

Das Erneuerbare-Energien-Gesetz wird zurzeit heftig diskutiert. Es hat zwar eine stark zunehmende Stromerzeugung aus erneuerbaren Energiequellen ermöglicht, wird aber mit Strompreiserhöhungen und Ineffizienzen in Verbindung gebracht. Die Autoren fordern eine grundsätzliche Anpassung der...

Current climate and energy policy has to operate under an ex-ante unforeseen economic crisis. An obvious consequence is the collapse of prices for carbon emission allowances as, for example, seen in the European Union. However, this price collapse may be amplified by the interaction of a carbon...

Affordable energy is one of the objectives of EU's energy policy. This goal has been challenged by many factors inuencing energy prices and costs such as developments in global energy markets, the EU ETS and the promotion of renewables. Analysing energy costs (prices times quantity) instead of...

We investigate the effect of the European Union Emissions Trading System (EU ETS) on the economic performance of manufacturing firms in Germany. Our difference-in-differences framework relies on several parametric conditioning strategies and nearest neighbor matching. As a measure of economic...