Die Klima-Konferenz in Bali ist zu Ende, der Weg zu einem neuen internationalen Klimaabkommen aber alles andere als klar. Doch schon heute steht fest: Die massive Absenkung der weltweiten Treibhausgasemissionen wird sich durch strikte Vorgaben allein wohl kaum erreichen lassen - dazu sind die...

Linkage of different countries' domestic permit markets for pollution rights into a single international market alters governments' incentives, and may trigger adjustments of the number of allocated permits. First, this work finds that in a non-cooperative equilibrium, international emissions...

To meet their Kyoto targets under the Burden Sharing Agreement, most European countries plan to make use of the flexible project mechanisms "Clean Development Mechanism" (CDM) and "Joint Implementation" (JI). In addition, CDM and JI credits can be used by installations to fulfil their...

This paper analyzes hybrid emissions trading systems (ETS) under partitioned environmental regulation when firms’ abatement costs and future emissions are uncertain. We show that hybrid policies that introduce bounds on the price or the quantity of abatement provide a way to hedge against...

The current EU proposal on greenhouse gas emission reduction has 28 targets for 2020: an EU-wide one for carbon dioxide emissions covered by the European Trading System, and one target for non-ETS emission per Member State. Implementation is necessarily more expensive than needed. I consider...

To show global leadership and to foster the international negotiations for a long term international climate regime the EU has decided to reduce its GHG emissions by 20% relative to 1990 until the year 2020. These reductions will even rise to 30% "if there is an international agreement...

We investigate how moral concerns about permit trading affect an endogenous pollution permit trading equilibrium, where governments choose non-cooperatively the amount of permits they allocate to domestic industries. Politicians may feel reluctant to allow permit trading and/or may prefer that...

In the next years several power plants throughout Europe have to be replaced and the questions is whether to build coal fired power plants with carbon capture and storage (CCS). In a study for the city of Kiel in northern Germany only a 800 MW coal power plant reaches a required minimum...

This paper investigates the welfare costs of unilateral versus internationally coordinated emission permit policies in a two-country overlapping generations model with producer carbon emissions. We show that, for a net foreign debtor country, the domestic welfare costs of a unilateral domestic...

Strategic market behavior by permit sellers will harm the European Union as the EU as a whole is expected to become a large net buyer of permits in a follow-up agreement to the Kyoto Protocol. In this paper we explore how the EU could benefit from making permit trade agreements with non-EU...