Allocation in the European Emissions Trading Scheme: Rights, Rents and Fairness

443 Pages·2007·1.61 MB·English

by  A. Denny Ellerman

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Allocation in the European
Emissions Trading Scheme
Acriticalissueindealingwithclimatechangeisdecidingwhohasaright
to emit carbon dioxide, particularly when those emissions are limited.
Allocation in the European Emissions Trading Scheme provides the first
in-depth description and analysis of the process by which rights to emit
carbon dioxide were created and distributed in the European Emissions
Trading Scheme. This is the world’s first large-scale experiment with an
emission trading system for carbon dioxide and is likely to be copied by
others if there is to be a global regime for limiting greenhouse gas emis-
sions.Thebookconsistsofcontributionsbyparticipantsintheallocation
processintenrepresentativememberstatesandattheEuropeanCommis-
sion.Theproblemsencounteredbythesetenrepresentativecountries,the
solutions found and the choices they made, will be of interest to all who
areconcernedwithclimatepolicyandtheuseofemissionstrading.
a. denny ellerman is Senior Lecturer at the Sloan School of Man-
agement,MassachusettsInstituteofTechnology.
barbara k. buchner is Senior Researcher at the Fondazione Eni
EnricoMattei(FEEM).
carlo carraro is Professor of Econometrics and Environmental
Economics at the University of Venice and Director of Research at the
FondazioneEniEnricoMattei(FEEM).

Allocation in the
European Emissions
Trading Scheme
Rights, Rents and Fairness
Edited by
a. denny ellerman
MassachusettsInstituteofTechnology
barbara k. buchner
FondazioneEniEnricoMattei
carlo carraro
UniversityofVenice
CAMBRIDGEUNIVERSITYPRESS
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Published in the United States of America by Cambridge University Press, New York
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© Cambridge University Press 2007
This publication is in copyright. Subject to statutory exception and to the provision of
relevant collective licensing agreements, no reproduction of any part may take place
without the written permission of Cambridge University Press.
First published in print format 2007
ISBN-13 978-0-511-28917-0 eBook (EBL)
ISBN-10 0-511-28917-0 eBook (EBL)
ISBN-13 978-0-521-87568-4 hardback
ISBN-10 0-521-87568-4 hardback
Cambridge University Press has no responsibility for the persistence or accuracy of urls
for external or third-party internet websites referred to in this publication, and does not
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Iffactorsofproductionarethoughtofas
rights,itbecomeseasiertounderstandthatthe
righttodosomethingwhichhasa
harmfuleffect...isalsoafactorof
production.
RonaldCoase,
TheProblemofSocialCost

Contents
Listoffigures pageix
Listofboxes xi
Listoftables xii
Listofcontributors xiv
Introductorynote/Foreword xvii
Acknowledgements xix
Glossaryandabbreviations xx
PartI TheEUETSallocationprocess
1 TheEUETSallocationprocess:anoverview 3
A.DennyEllerman,BarbaraK.Buchnerand
CarloCarraro
2 AbriefbutlivelychapterinEUclimatepolicy:the
Commission’sperspective 13
PeterZapfel
PartII ExperiencesfromMemberStatesinallocating
allowances
3 UnitedKingdom 41
DavidHarrisonandDanielRadov
4 Germany 72
FelixChristianMatthesandFranzjosefSchafhausen
5 Denmark 106
SigurdLaugePedersen
vii
viii Contents
6 Sweden 132
LarsZetterberg
7 Ireland 157
ConorBarry
8 Spain 182
PablodelRı´o
9 Italy 213
DanieleAgostini
10 Hungary 246
IstvanBart
11 CzechRepublic 269
TomasChmelik
12 Poland 301
BoleslawJankowski
PartIII Concludingremarksandbackgroundmaterial
13 Unifyingthemes 339
A.DennyEllerman,BarbaraK.Buchnerand
CarloCarraro
AppendixI Participants 370
AppendixII Theindividualcountryoutlines 378
AppendixIII Thecountrytables 381
1 NAPsummaryforCzechRepublic 381
2 NAPsummaryforDenmark 383
3 NAPsummaryforGermany 385
4 NAPsummaryforHungary 387
5 NAPsummaryforIreland 389
6 NAPsummaryforItaly 391
7 NAPsummaryforPoland 393
8 NAPsummaryforSpain 396
9 NAPsummaryforSweden 398
10 NAPsummaryforUnitedKingdom 400
AppendixIV Backgroundmaterialfromthe
EuropeanCommission 402
Index 405