In order to cover their CO₂ emissions, power companies receive most of the required EU ETS allowances for free. In line with economic theory, these companies pass on the costs of these allowances in the price of electricity. This article analyses the implications of the EU ETS for the power...

We compare the national allocation plans (NAPs), proposed and submitted by EU Member States as of October 2006, with our estimations for CO₂ emissions by the installations covered by these NAPs. The collective allocations proposed under phase II NAPs exceed the historic trend of emissions...

This article surveys the experience of conditionality provisions applied by the World Bank, the IMF, bilateral donors, and the European Union's accession process. Ownership is essential for effective cooperation and requires domestic climate policies to be country-driven and decision-making to...

We quantified the volume of free allowances that different national allocation plans proposed to allocate to existing and new installations, with specific reference to the power sector. Most countries continue to allocate based on historic emissions, contrary to hopes for improved allocation...

The European Directive on the EU ETS allows governments to auction up to 10% of the allowances issued in phase II 2008-2012, without constraints being specified thereafter. This article reviews and extends the long-standing debate about auctioning, in which economists have generally supported...

Comparisons of resource assessments suggest that sufficient renewable energy resources are available to allow for large-scale deployment of renewable energy technologies. Economic analysis identifies barriers to the adoption of renewable energy sources resulting from (i) market structure, (ii)...

Investment planning models inform investment decisions and government policies. Current models do not capture the intermittent nature of renewable energy sources, restricting the applicability of the models for high penetrations of renewables. We provide a methodology to capture spatial...