Since its introduction, the European Emissions Trading Scheme (EU ETS) has been struggling with an oversupply of emission allowances and a highly volatile allowance price. One reason for the price decline is technological progress and ist demand-reducing effect, which is only partially taken...

Since its inception, the European Emission Trading Systems (EU ETS) has been struggling with an oversupply of emission allowances and a highly volatile allowance price. A demand reducing technological progress accelerates the accumulation of excess allowances in the EU ETS, which is only...