Among all types of economic activities in Ukraine the power industry is the only one that utilizes cross subsidization mechanisms. Electricity tariffs for the residential consumers are set far below the estimated retail level, while industrial consumers have to pay higher prices in order to...

The EU-wide Emission Trading Scheme (ETS), established in 2005, is a key pillar of Europe¿s strategy to attain compliance with the Kyoto Protocol. Under this scheme, CO2 allowances have thus far been allocated largely free of charge. This paper demonstrates that such cost-free allocation,...