2009
DOI: 10.1162/glep.2009.9.2.101
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The Origin, Evolution and Consequences of the EU Emissions Trading System

Abstract: The EU Emissions Trading System (EU ETS) is the cornerstone of EU climate policy, a grand policy experiment, as the first and largest international emissions trading system in the world. In this article, we seek to provide a broad overview of the initiation, decision-making and implementation of the EU ETS so far. We explore why the EU changed from a laggard to a leader in emissions trading, how it managed to establish the system rapidly, and the consequences to date, leading up to the 2008 proposal for a revi… Show more

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Cited by 87 publications
(35 citation statements)
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“…Another option in this regard might be the coupling of cap and tax. Cap and trade as well as cap and dividend systems have been discussed in literature sufficiently and implemented successfully on the industrial level (Ellerman and Buchner 2007;Skjaerseth and Wettestad 2009;Kunkel and Kammen 2011). A to-bedeveloped approach may be a composition of both approaches, adapted to households.…”
Section: Outlook and Policy Discussionmentioning
confidence: 99%
“…Another option in this regard might be the coupling of cap and tax. Cap and trade as well as cap and dividend systems have been discussed in literature sufficiently and implemented successfully on the industrial level (Ellerman and Buchner 2007;Skjaerseth and Wettestad 2009;Kunkel and Kammen 2011). A to-bedeveloped approach may be a composition of both approaches, adapted to households.…”
Section: Outlook and Policy Discussionmentioning
confidence: 99%
“…We have pointed to poor experience with the first trading period largely as a result of the member states' influence as one important explanation for the change in actors' positions. In fact, a number of conditions changed in the negotiations on the revised ETS, but that is another story told elsewhere (see Skjaerseth and Wettestad, 2009).…”
Section: Analysis Of Expectations and Observationsmentioning
confidence: 95%
“…In addition, allocation of allowances will be based on harmonized rules and auctioning will be the main allocation method. Auctioning will increase from less than 4% in the 2008-2012 trading period to more than 50% in the third period (Skjaerseth and Wettestad, 2009). …”
Section: Making the Eu Etsmentioning
confidence: 99%
“…The decision process for free allocation of EUAs was decentralised to MS´s NAPs and based on grandfathering of historical emissions. This decentralised approach, together with the free allocation, helped to gain acceptance among MS and participating sectors and enabled a smooth implementation (Skjaerseth & Wettestad, 2009). Some national authorities were overly generous in handing out free EUAs to domestic industries (Andersson & Di Maria, 2011).…”
Section: A Background To Eu Etsmentioning
confidence: 99%