The effectiveness of an emissions trading system in terms of reducing greenhouse gas emissions is mainly due to the magnitude of the specified emission cap. Assuming sufficient control, a quantitative emission target defined in such a way is quasi automatically achieved by the limited allocation...

This report analyses the influence of the Cap and Trade (CaT) system and the electricity market in California along two main questions: How do CaT design features affect the environmental effectiveness of the system and the quality of the carbon price signal? How do electricity market design...

This report analyses the interaction of the European Emissions Trading System (EU ETS)and the German and Polish electricity markets along two main questions: How do EU ETS design features affect the environmental effectiveness of the system and the quality of the carbon price signal? How do...

The effectiveness of carbon pricing as a market-based policy tool with economy-wide transformation potential has increasingly rendered it the instrument of choice among policy makers responding to challenges posed by climate change. However, the potential for jurisdictions to introduce carbon...

This report provides an overview of the main outputs of the research project Influence of market structures and market regulation on the carbon market (2018-2021). The aim of the project, commissioned by the German Environment Agency, was to gain a better understanding of the impact of market...

A broad consensus exists that carbon pricing is key for cost-effective emission reductions and that it must play a major role in driving the transition to a climate-neutral economy. However, despite significant progress in wider climate policy uptake in recent years, the vast majority of...

This report analyses the influence of the design features of China’s pilot emissions trading systems (ETS) in the Province of Hubei and the Municipal City of Shenzhen and the development of the electricity markets on the quality of the carbon price signal. Based on publicly available data and...

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...