The aim of this paper is to find out whether shareholders consider the EU Emission Trading Scheme (EU ETS) as value relevant for polluting firms. An analysis is conducted of changes in share prices, caused by the first publication of annual compliance data. In April 2006, it turned out that...

This paper examines empirically whether differences in legal competences of National Regulatory Authorities (NRAs) of European gas and electricity markets are rationally aligned to the corresponding countries' divergent levels of 1) security, 2) competitiveness, and 3) carbon-neutrality of...

Carbon Capture and Storage (CCS) is a new combination of technologies that may become available to firms that emit CO2 under the European Union’s emissions trading scheme (EU ETS). An example is an electricity producer that captures its CO2 and transports it to a depleted gas field where it is...

Emissions trading systems (ETSs) are emerging around the globe in response to climate change concerns. A severe side effect that may flow from an ETS is carbon leakage, which is generally understood as the shift of production to less regulated jurisdictions as a result of carbon pricing policy,...

A sub-global emissions trading scheme (ETS) risks harming competitiveness and causing carbon leakage. These concerns cast doubt on the efficiency and environmental effectiveness of unilateral climate policies. ETSs implemented thus far include measures to address competitiveness and leakage...

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...