The Legal and Economic Case for an Auction Reserve Price in the EU Emissions Trading System

Carolyn Fischer, Leonie Reins, Dallas Burtraw, David Langlet, Åsa Löfgren, Michael Mehling, Stefan Weishaar, Lars Zetterberg, Harro van Asselt, Kati Kulovesi

Research output: Contribution to JournalArticleAcademicpeer-review

Abstract

When it first launched in 2005, the European Union emissions
trading system (EU ETS) expected to see carbon dioxide prices of
around €30/ton and be a cornerstone of the EU's climate policy.
The reality was a cascade offalling prices, a ballooning privately
held emissions bank, and a decade of muted incentives for
investment in the technology and innovation necessary to achieve
long-term climate goals. The European Commission responded
with various administrative measures, including postponing the
introduction of allowances ("backloading") and using a quantitybased
criterion for regulating future allowance sales ("the market
stability reserve"). While prices have now begun to recover, it is
farfrom clear whether these measures are sufficient to adequately
support the price of carbon dioxide into the future...
Original languageEnglish
Pages (from-to)1-35
Number of pages35
JournalThe Columbia Journal of European Law
Volume26
Issue number2
Publication statusPublished - Apr 2020

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