Member Login

EEEP Issues

IAEE Members and subscribers to Economics of Energy & Environmental Policy : Please log in to access the full text article or receive discounted pricing for this article, if necessary.

View Cart  

Price: $25 Add to Cart (html and pdf) | Add to Cart (ebook)

Linking Emission Trading Schemes: A Short Note
Author(s): Georg Grull and Luca Taschini

Economics of Energy & Environmental Policy
Volume 1, Number 3

Abstract: In principle, linking emission trading schemes would favour the depletion of low-cost abatement opportunities that are geographically spread over the globe. However, this would only be possible if the price of the emission permits in the different schemes converge to one price. Using a simple model-free structure, the paper first assesses how a unilateral link between two schemes or a bilateral link between schemes with restrictions on the amount of imported permits preempt a correct price convergence. Second, it shows under which conditions bilateral links between schemes with price containment mechanisms allows permit price convergence.

Keywords: Direct link, EU ETS, Global CO2 market, Indirect link, Kyoto Protocol
http://dx.doi.org/10.5547/2160-5890.1.3.8

Reference information is available for this article. Join IAEE or purchase the article to view reference data.

 


Article Tools

(More Information)