The generation of electricity and heat is the largest single activity covered by the EU Emissions Trading System (EU ETS). Due to the interconnectedness, the difference in the emission intensity of the different fuels and their configuration in a competitive marginal cost pricing market, power...

This report analyses the interaction of the pilot Emissions Trading System (ETS) and the electricity market in Mexico. It does so along two main questions: a) How do ETS design features affect the environmental effectiveness of the system and the quality of the carbon price signal? b) How do...