The central pillar of European climate policy, the European Emissions Trading System (EU ETS), is currently under scrutiny, as the allowance price is persistently low at around 5€/tCO2. The cap was met and emissions actually declined in recent years, ensuring the environmental effectiveness of...

The central pillar of European climate policy, the European Emissions Trading System (EU ETS), is currently under scrutiny, as the allowance price is persistently low at around 5€/tCO2. The cap was met and emissions actually declined in recent years, ensuring the environmental effectiveness of...

This policy brief builds on results arising from the mitigation and policy appraisal research domains of the ADAM project (Adaptation and Mitigation Strategies: Supporting European Climate Policy). Funded by the European Commission and coordinated by the Tyndall Centre for Climate Change...

Germany aims to phase out coal to achieve its 2030 climate target, for which a UK-style carbon price floor is considered. But this measure comes with risks related to the uncertainty about what price level is sufficient, and the waterbed effect arising from unilateral policy under the EU-ETS....

Long-term commitment is crucial for the dynamic efficiency of intertemporal cap-and-trade programs. Discretionary interventions in such programs could destabilize the market, and necessitate subsequent corrective interventions that instigate regulatory instability (Kydland and Prescott, 1977)....

The EU is currently preparing a major overhaul of its climate policy framework to deliver on the Green Deal’s new climate targets of a 55 percent cut in greenhouse gas (GHG) emissions relative to 1990 by 2030 and GHG neutrality by 2050. Extending and strengthening the role of carbon pricing,...