Abatement and Allocation in the Pilot Phase of the EU ETS

Anderson, B. and Di Maria, C. (2011) Abatement and Allocation in the Pilot Phase of the EU ETS. Environmental and Resource Economics, 48 (1). pp. 1-21. ISSN 0924-6460

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Abstract

We use historical industrial emissions data to assess the level of abatement and over-allocation that took place across European countries during the pilot phase (2005-2007) of the European Union Emission Trading Scheme. Using a dynamic panel data model, we estimate the counter factual (business-as-usual) emissions scenario for EU member states. Comparing this baseline to allocated and verified emissions, we find that both over-allocation and abatement occurred, along with under-allocation and emissions inflation. Over the three trading years of the pilot phase we find over-allocation of approximately 280 million EUAs and total abatement of 247 Mt CO. However, we calculate that emissions inflation of approximately 73 Mt CO also occurred, possibly due to uncertainty about future policy design features.

Item Type: Article
Uncontrolled Keywords: emissions trading scheme,climate policy,dynamic panel data analysis,c23,o13,q54,q58
Faculty \ School: Faculty of Social Sciences > School of Economics
Related URLs:
Depositing User: Pure Connector
Date Deposited: 22 Nov 2013 14:15
Last Modified: 21 Apr 2020 22:11
URI: https://ueaeprints.uea.ac.uk/id/eprint/44405
DOI: 10.1007/s10640-010-9399-9

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