The EU Electricity Directive requires that consumers be provided information about the sources from which the electricity is produced, as well as about the CO2 emissions and the radioactive waste resulting from production sources. In this paper we examine the effectiveness of this information...

In this paper I discuss two questions which the decision maker has to consider before she makes use of the method of cost benefit analysis. First, she has to ask herself if she shares the ethical foundation of environmental cost benefit analysis. If not, could environmental cost benefit analysis...

The possibility of using flexibility mechanisms as a way to achieve national commitments under an international agreement to reduce climate gases has been a hot issue throughout the negotiating process of the Kyoto Protocol. A variety of arguments either in favour of or against emissions trading...

This paper examines the connection between market power and the size of efficiency loss in a market for tradeable CO2 permits. Countries, not firms, are the players in the market. A situation is analyzed where some of the, participants have market power, i.e., they can influence the price of a...

In this paper we analyze how restricting intertemporal trading by prohibiting borrowing of emission permits affects the ability of a dominant agent to exploit its market power, and the consequences this has for the cost-effectiveness of implementing an emissions target. We show that the...

It is a well known result that taking distributional constraints into account when allocating tradable permits to different agents can lead to an imperfectly competitive permit market. Hence, the emission target is no longer met at least cost. In this paper we suggest an allocation rule for...

With implementation of the Kyoto Protocol, Russia will most likely be able to exert market power in the emission permit market. But, as Russia is also a big exporter of fossil fuels, the incentives to boost the permit price may be weak. However, a significant share of Russia’s fossil fuel...