National Climate Policies and the European Emissions Trading System

Research output: Contribution to journalJournal articleResearchpeer-review

We set up a model of the European Emissions Trading System (ETS) to evaluate the prospects for the system after the recent reform. Our simulations indicate that the current allowance surplus may not disappear before the 2050s. They also show that the mechanics of the new Market Stability Reserve imply that annulment of allowances by an EU member state may be largely ineffective, whereas national emission reductions can permanently reduce EU-wide CO2 emissions. We suggest that the next ETS reform should include a floor and a ceiling for the price of emission allowances.
Original languageEnglish
JournalNordic Economic Policy Review
Issue number12
Pages (from-to)63-101
Publication statusPublished - 13 May 2019

    Research areas

  • Faculty of Social Sciences - European Emissions Trading System, Market Stability Reserve, effectiveness of national climate policies

ID: 242773691