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Abatement and allocation in the pilot phase of the EU ETS
Date Issued
2009-04
Date Available
2010-06-11T15:37:45Z
Abstract
We use historical industrial emissions data to assess the level of abatement and overallocation
that took place across European countries during the pilot phase (2005-2007)
of the European Union Emission Trading Scheme. Using a dynamic panel data model, we
estimate the counterfactual (business-as-usual) emissions scenario for EU member states.
Comparing this baseline to allocated and verified emissions, we conclude that both overallocation
and abatement occurred, along with under-allocation and emissions inflation.
Over the three trading years of the pilot phase we find over-allocation of approximately 376
million EUAs (6%) and total abatement at the member state level of 107 Mt CO2 (1.8%).
However, due to over-allocation and possible uncertainty about future allocation methodologies,
we calculate that emissions inflation of approximately 119 Mt CO2 (2%) occurred,
resulting in emissions over the pilot phase being approximately 12 Mt CO2 (0.2%) higher
than they would have been in the absence of the EU ETS.
Sponsorship
Other funder
Other Sponsorship
Environmental Protection Agency
Type of Material
Conference Publication
Publisher
Irish Economic Association
Copyright (Published Version)
2009, The Irish Economic Association
Classification
C23
O13
Q54
Q58
Subject – LCSH
Emissions trading--Europe
Environmental policy--Europe
Greenhouse gas mitigation--Europe
Language
English
Status of Item
Not peer reviewed
Conference Details
Twenty-third Annual Conference of the Irish Economic Association, Blarney, Co. Cork, 24-26 April 2009
This item is made available under a Creative Commons License
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