Abatement and allocation in the pilot phase of the EU ETS

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Title: Abatement and allocation in the pilot phase of the EU ETS
Authors: Anderson, Barry
Di Maria, Corrado
Convery, Frank J.
Permanent link: http://hdl.handle.net/10197/2075
Date: Apr-2009
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.
Funding Details: Other funder
Type of material: Conference Publication
Publisher: Irish Economic Association
Copyright (published version): 2009, The Irish Economic Association
Keywords: Emissions trading schemeClimate policyDynamic panel data analysis
Subject LCSH: Emissions trading--Europe
Environmental policy--Europe
Greenhouse gas mitigation--Europe
Other versions: http://www.iea.ie/conferences/2009/AndersonDiMariaConverypaper.pdf
Language: en
Status of Item: Not peer reviewed
Conference Details: Twenty-third Annual Conference of the Irish Economic Association, Blarney, Co. Cork, 24-26 April 2009
Appears in Collections:Architecture, Planning and Environmental Policy Research Collection

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