Denmark has a highly ambitious goal of reducing greenhouse gas emissions 70 percent below 1990 levels by 2030. While there is general agreement that carbon pricing should be the centerpiece of Denmark’s mitigation strategy, pricing needs to be effective, address equity and leakage concerns,...

This essay provides an overview of the major emissions trading programs of the past thirty years on which significant documentation exists, and draws a number of important lessons for future applications of this environmental policy instrument. References to a larger number of other emissions...

We collect data on 24,000 state aid cases within the European Union to create granular measures of national environmental support and study their interactions with the European Union Emissions Trading System (EU ETS). Exploiting variation in regulated installations' exposure to carbon prices and...

While the potential of carbon pricing to curb CO2 emissions is widely acknowledged, the instrument keeps being disputed due to its potential regressivity and the burden it places on low-income households. Recently also the issue of horizontal inequalities has gained in importance in political...

This article summarizes insights from the 36th Energy Modeling Forum study (EMF36) on the magnitude and distribution of economic adjustment costs of greenhouse gas emission reduction targets. Under the Paris Agreement, countries have committed to emission reduction targets - so-called Nationally...

This article summarizes insights of the 36th Energy Modeling Forum study (EMF36) on the magnitude and distribution of economic adjustment costs to greenhouse gas emission reduction targets. Under the Paris Agreement countries voluntarily committed themselves to emission reductions - so-called...

While the EU-wide carbon price has already been adopted for the buildings and transport sectors with ETS°2, detailed analyses of the macroeconomic and distributional effects (both within and between countries) are scarce. We use the macroeconomic model ADAGIO to estimate the effects of EU-wide...

This article summarizes the insights of an Energy Modeling Forum study on the magnitude and distribution of economic adjustment costs to greenhouse gas emission constraints in the aftermath of the Paris Agreement where countries voluntarily committed themselves to Nationally Determined...

According to the Phase IV (2021-2030) rules of the EU ETS, the total amount of emissions permits allocated to firms is not fixed but endogenous. This implies that a national climate policy that overlaps with the emission trading system can have an impact on total aggregate emissions. Roughly...

We analyze the energy market and ETS outcomes in Kazakhstan, a major fossil-fuel exporter. The energy market was characterized by the presence of large state-owned enterprises, prevalence of fossil fuel subsidies, and dominance of coal-fired generation. Despite the ETS, Kazakhstan's CO2...