An important feature in the design of an emissions trading program is how emissions allowances are initially distributed into the market. In a competitive market the choice between an auction and free allocation should, according to economic theory, not have any influence on firms’ production...

This paper addresses how to regulate greenhouse gas emissions from the transport sector when abatement costs are uncertain. In an EU context, it is shown that a combination of a cap-and-trade system and emission taxes is preferable as it minimizes the expected efficiency loss. The optimal design...

An important feature in the design of an emissions trading program is how emissions allowances are initially distributed into the market. In a competitive market the choice between an auction and free allocation should, according to economic theory, not have any influence on firms’ production...

This paper was prepared as a contribution to the Working Group on Ships of the European Union's European Climate Change Programme (ECCP) and presented on 22–23 June 2011 at the second meeting of the group. It discusses various options that may be considered by the EU when contemplating, in the...

This paper reviews the financial capabilities of a Levy on carbon dioxide emissions from international shipping as proposed in the International Maritime Organization (IMO) by Cyprus, Denmark, the Marshall Islands and Nigeria. The conclusion is that a relatively high levy would be required to...

The report discusses options for reconciling the principle of Common but Differentiated Responsibility (CBDR) with IMO’s principle of equal treatment of ships when creating a markedbased measure for curbing CO2 emissions from international shipping. Global application with revenues used for...