Year: 2017
Type: preprint
Abstract: The EU ETS is one of the main European climate policies, covering 45 percent of EU’s greenhouse gas\nemissions. Its main goal is to limit emissions cost-effectively, and to trigger innovations using a strong price\nsignal, making low-carbon technologies more competitive. While emissions reduction targets for 2020 have\nalready been achieved, the exact role of the ETS in this success remains controversial. The assessment is\ncrucial, as more and more countries and regions plan to adopt similar policies to achieve their targets expressed\nin the Intended Nationally Determined Contributions, communicated at the Paris Conference of the Parties. The\nEU ETS, as the longest running and largest carbon market in the world, will undoubtedly serve as a point of\nreference.\nThis paper attempts to provide a comprehensive analysis of the policy. First part outlines the historical\ndevelopment of emission trading systems, as well as the development of the EU ETS since its inception in 2005.\nSecond part uses FASTER principles developed by the World Bank and the OECD to perform a multi-criteria,\nqualitative analysis of the EU ETS in its current form. Third part concentrates on the upcoming revision for the\nfourth phase, evaluating whether the proposals correctly address the policy’s shortcomings. It also provides some\nalternative reform proposals.
Authors: Timbeau, Xavier, Wiejski, Pawel
Institution: Institut d'Etudes Politiques de Paris
Language: English
Subfield: Economics and Econometrics
Domain: Social Sciences
SDG: Climate action
Open Access status: green
OpenAlex ID: W2782632411