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On 23 October 2001 the European Commission adopted a proposal for a directive for trade in greenhouse gas emissions. Following the US experience of emissions trading systems, this marks the first large-scale attempt to deploy this instrument of environmental policy in Europe. The proposal places...
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This discussion paper reviews the literature on experiences with innovation under the existing emissions trading schemes in the USA. The basic result from this review is that the innovation effects triggered by emissions trading have been limited because a) targets were not constraining in the...
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The effectiveness of an emissions trading system in terms of reducing greenhouse gas emissions is mainly due to the magnitude of the specified emission cap. Assuming sufficient control, a quantitative emission target defined in such a way is quasi automatically achieved by the limited allocation...
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