We quantified the volume of free allowances that different national allocation plans proposed to allocate to existing and new installations, with specific reference to the power sector. Most countries continue to allocate based on historic emissions, contrary to hopes for improved allocation...

We analyse the efficiency effects of the initial permit allocation given to firms with market power in both permit and output market. We examine two models: a long-run model with endogenous technology and capacity choice, and a short-run model with fixed technology and capacity. In the long run,...

Art. 17 of the Kyoto Protocol defines International Emissions Trading exclusively on country level, sub-national entities like industrial installations or households are not included initially. However, there are some arguments for such an expansion, of which the most important ones are a...