Richard Tol, 27 September 2016

The UK may opt to leave the EU Emissions Trading System. This column argues that as the UK is a large importer of emission permits, this would make meeting its climate policy targets much harder and dearer, and would remove the legal standing of many permits circulating in the rest of the EU. Some non-EU countries do take part in the Emissions Trading System, and this appears to be the best option for the UK post-Brexit. If not, the UK Government will be forced into a major overhaul of its climate policy.

Karsten Neuhoff, 07 March 2015

The European Commission proposed the implementation of a Market Stability Reserve as a response to a surplus of allowances in the Emissions Trading System. This column discusses how the Reserve should be designed and whether it could improve the emissions trading. Insight from several models indicates that the Stability Reserve corrects for a number of market failures in the emissions trading.  

Jacques Pelkmans, 16 December 2007

European business is concerned about EU leadership in climate strategies. The shortage of followers elsewhere in the world adds to nervousness about cost competitiveness and pass-through, which, in turn, may eventually undermine the credibility of EU strategies internally. It will be important to read the writing on the wall and respond if EU leadership in Bali is to continue.

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