This is the first article on expanding the European Union Emissions Trading Scheme (EU ETS) to households in which law and economics is combined with behavioral science. The article gathers relevant theoretical insights and discusses how established empirical findings can be used to design a...

The objective of this paper is to find out whether differences between the domestic permit allocation procedures of the Member States of the European Union (EU) will distort competition and lead to state aid in a European carbon trading market. This paper shows that it depends whether one takes...