After the failure of the United Nations climate change conference at Copenhagen the EU is under domestic pressure to … justify ambitious unilateral emissions reduction targets. Cost efficiency of EU-wide emission abatement becomes increasingly … important in order to sustain EU leadership in climate policy. We argue that administered EU targets for renewable energies are …

already regulated by the EU Emissions Trading System (ETS), and in some countries like Germany the phaseout of coal will be … welfare effects across EU member states. For Germany, coal phaseout combined with unilateral cancellation of allowances is …

base case we find that the EU implementation of the Kyoto Protocol implies low overall costs and a relatively even cost … marginally but changes the cost distribution significantly, holding total EU emissions constant. …

magnitude and distribution of abatement costs across EU countries vis-à-vis a comprehensive EU emission trading regime. We find … permit trade enhances the secondary terms-of-trade benefits to EU member countries with low marginal abatement costs at the … expense of the other EU member states. …