EU ETS and the new green paradox

With the new rules of the EU ETS, involving cancellation of allowances, cumulative emissions are no longer fixed but depending on the market outcome. Perino (2018) showed that additional abatement effort can reduce cumulative emissions if it occurs within a few years. This article shows that Perino’s result will be reversed, i.e., cumulative emissions increase, if the abatement effort is at a later year, or permanent. Thus, a new green paradox has emerged.

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Year of publication:	2019
Authors:	Rosendahl, Knut Einar
Publisher:	Munich : Center for Economic Studies and ifo Institute (CESifo)
Subject:	emissions trading \| green paradox \| EU ETS \| MSR

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Series:	CESifo Working Paper ; 7645
Type of publication:	Book / Working Paper
Type of publication (narrower categories):	Working Paper
Language:	English
Other identifiers:	1668162237 [GVK] hdl:10419/201871 [Handle] RePec:ces:ceswps:_7645 [RePEc]
Classification:	H23 - Externalities; Redistributive Effects ; Environmental Taxes and Subsidies ; Q54 - Climate; Natural Disasters ; Q58 - Government Policy
Source:	EconStor

Persistent link: https://www.econbiz.de/10012052751