Abstract In Europe’s Emission Trading System (ETS), prices for emission permits have remained low for many years now. This fact gave rise to controversies on whether there is a need for fundamentally reforming the ETS. Potential reform proposals include the introduction of a minimum price for...

Summary Interaction effects capture the impact of one explanatory variable on the marginal effect of another explanatory variable. To explore interaction effects, so-called interaction terms are typically included in estimation specifications. While in linear models the effect of a marginal...

Abstract The allure of an environmentally benign, abundant, and cost-effective energy source has led an increasing number of industrialized countries to back public financing of renewable energies. Germany’s experience with renewable energy promotion is often cited as a model to be replicated...

Summary Identifying free-ridership is significant to several issues relevant to program evaluation, including the calculation of net program benefits and assessments of political acceptability. Despite the potential of free-ridership to seriously undermine the economic efficiency of a program...

Summary As part of its efforts to reach the targets of the Kyoto Protocol, the European Commission published in December 2008 a resolution on a new directive to reduce the per-kilometer CO2 emissions of newly registered automobiles. This paper critically assesses this resolution with respect to...