The EU Emission Trading Scheme (EU ETS) for CO2-emissions from energy and industry installations reflects a paradigm … shift towards market-based in-struments for environmental policy in the EU. The centerpieces of the EU ETS are National …-2012) of the EU ETS. At the macro level, we assess whether the submitted ET-budgets are stringent, and whether they imply a …

accounting also for the possibilities of purchasing international carbon credits from outside the EU. A computable general … equilibrium model is then used to assess the cost efficiency of current EU climate strategies. Finally, based both on the …