The environmental ambition of an ETS may be assessed considering three dimensions: emissions coverage, stringency and determinacy.
Allowance prices are an imperfect metric for the stringency of an ETS. Yet, arguably, they are the best proxy for ETS stringency.
Beyond the partial equilibrium representation of linking, a range of economic and political factors can diminish a jurisdiction’s willingness or ability to link.
When choosing a linking partner, many factors are weighed up which transcend the compatibility of ETS designs and differences in environmental ambition.
Linkages between absolute- and relative-cap ETSs are problematic in that overall emissions may increase.
In the literature, non-cooperative linking most often leads to higher emissions than if the same ETSs operated under autarky.
There is a shortage of studies simulating the economic impacts of linkages between existing ETSs. More work is also needed to identify the desirable content of future linking agreements.
After years of record announcements, frantic policy development and the establishment of substantial public support mechanisms, the clean hydrogen sector is nearing an inflexion point. Many clean hydrogen projects have [...]
The safeguarding of critical offshore energy infrastructure has assumed a heightened level of urgency in the wake of the Nord Stream pipeline explosions in September 2022 and the suspected sabotage [...]
The Performance Review Commission (PRC) is an independent body supported by EUROCONTROL with a remit to review and report on European air traffic management (ATM) performance. While performance has improved [...]
- This policy brief reviews some of the latest studies on distributional and competitiveness effects that were presented at the International Conference on Ex-Post Evaluation of Emissions Trading organised under [...]