In July 2014, Australia abolished the Australian carbon pricing mechanism introduced in 2011. In comparison, the EU emissions trading scheme has been up and running since 2005 despite critical challenges at various junctures. What explains the quick unravelling of the former and the...

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...