UID:
kobvindex_DGP1642255726
Format:
graph. Darst., Tab., Lit. S. 209
ISSN:
0043-2652
Content:
The upcoming European Emissions Trading Scheme (ETS) is a very controversial climate policy instrument. Its impact and performance depend to a large extent on the National Allocation Plans (NAPs) that are not finally settled. In this paper, we analyse a range of likely macro allocations to the ETS sectors using the simulation model DART. The analysis of the simulation results highlights interesting details about allowances prices and allowance trade flows between Member States as well as about potential cost savings and competitiveness effects. There are three main results. The first is, that cost savings can only be achieved if the allowance allocation to the ETS sectors accounts for the fact that CO2 abatement is most costly in the sectors outside the ETS. This imphes that relatively few allowances should be allocated to the ETS sectors. Amore generous allocation as for example envisaged in the NAPs released so far would increase the overall costs of reaching the Kyoto targets. The second result is that the cheap abatement opportunities in the accession countries contribute substantially to the cost savings ofthe ETS. These countri.es also turn out to be the only net exporters of allowances. Finally, the simulation results show that the overall competitiveness effects of the ETS are quite small. (Die Weltwirtschaft / SWP)
In:
Die Weltwirtschaft, Berlin : Springer, 1950, (2004), 2, Seite 187-209, 0043-2652
Language:
German
Author information:
Klepper, Gernot 1951-
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