overall abatement and the allocation of given abatement between the policy bloc and the fringe are then inefficient. When the … completely. These cases occur when free allocation of quotas is less (very) generous, and the offset market delivers large (small …

on the quantity of permits to each country. The allocation is efficient if and only if it is proportional to efficient …

number of models, the impact of rules for primary permit allocation has so far hardly been focused on. This was mostly seen … permit allocation rules shows that the number of permits allocated to new plants often depends on their fuel and technology … generation technologies, emission constraints, endogenous investment allocation rules and price elasticity of demand. In …