The EU has proposed four flexibility mechanisms for the regulation of greenhouse gas emissions in the period 2013-2020: (1) the Emissions Trade Scheme (ETS), a permit market between selected companies; (2) trade in non-ETS allotments between Member States; (3) the Clean Development Mechanism...

The European Commission did not publish a cost-benefit analysis for its 2020 climate package. This paper fills that gap, comparing the marginal costs and benefits of greenhouse gas emission reduction. The uncertainty about the marginal costs of climate change is large and skewed, and estimates...

This paper sets out a methodology for updating an economic appraisal model to ensure that it takes appropriate account of costs arising from greenhouse gas emissions. While the analysis is based on the appraisal model used in Ireland, it should be broadly applicable to circumstances in any EU...

Under 2013 to 2020 European Union proposals for CO2 emission reduction, a Member State can transfer to another Member State ‘part’ of their allowed emission allocation in the non-Emission Trading Sector (“ETS”). The paper addresses three questions in relation to these Transfer Emission...

Three computable general equilibrium models are used to estimate the economic implications of a stylized version of EU climate policy. If implemented at the lowest possible cost, the 20% emissions reduction would lead to a welfare loss of 0.5-2.0% by 2020. Second-best policies increase costs. A...

Climate change is an important problem. It would be desirable to have legislation that would put Ireland on a low-cost and equitable trajectory to a zero-carbon economy. The draft Climate Change Response Bill 2010 will not achieve that. The exact emission reduction targets for 2020 are...