Industry-Level Emission Trading between Power Producers in the EU


Böhringer, Christoph


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URL: http://ub-madoc.bib.uni-mannheim.de/538
URN: urn:nbn:de:bsz:180-madoc-5382
Document Type: Working paper
Year of publication: 2000
The title of a journal, publication series: None
Publication language: English
Institution: Sonstige Einrichtungen > ZEW - Leibniz-Zentrum für Europäische Wirtschaftsforschung
MADOC publication series: Veröffentlichungen des ZEW (Leibniz-Zentrum für Europäische Wirtschaftsforschung) > ZEW Discussion Papers
Subject: 330 Economics
Classification: JEL: D58 Q43 Q58 ,
Subject headings (SWD): Europäische Union , Emission , Wirtschaftsmacht
Abstract: In this paper we investigate how restrictions for emission trading to the energy-intensive power sector will affect the magnitude and distribution of abatement costs across EU countries vis-à-vis a comprehensive EU emission trading regime. We find that emission trading between European power sectors allows the harvest of a major part of the efficiency gains provided by full trade as compared to strictly domestic action. However, trade restrictions may create a more unequal distribution of abatement costs across member states than is the case for a comprehensive trade regime. The reason for this is that restricted 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.
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