Intro -- Content -- Preface -- Summary -- 1. Introduction -- 1.1 Background -- 1.2 Objective of the Report -- 1.3 Contents of the Report -- 2. Auctioning -- 2.1 Background -- 2.2 Auctioning formats -- 2.3 Pros and cons of different schedules for auctioning -- 2.4 EU wide auctioning vs. national...

The efficiency effects of carbon pricing depend on how it impacts distortions in fossil fuel markets, most notably from local air pollution externalities. By offsetting these distortions, carbon pricing may generate significant net economic benefits, so it is in countries own interests to...