This paper discusses fundamental aspects of the European emissions trading system which has been implemented in January 2005. We show how institutional features set by the EU Commission and the required subsidiary decisions by the respective Member States are potentially in conflict with the...

In July 2003 the European Parliament and the Council have started a new era of environmental regulation by establishing a nationwide open emission trading system for the European Union. In this article we firstly critically discuss the institutional rules set by the EU-directive. Secondly, we...