In this paper we analyze the extent to which the increased role of allowance auctions after 2012 will influence the effectiveness, efficiency and equity of the Emissions Trading Scheme in the European Union (EU ETS). We argue that more auctioning affects neither the effectiveness nor the...

For the case of inflexible demand and considering network constraints, we introduce a Cost Minimisation (CM) based market clearing mechanism, and a model representing the standard Social Welfare Maximisation (SWM) mechanism used in European Day Ahead Electricity Markets. Since the CM model...