Climate | Energy
EU Emissions Trading: The Need for Cap Adjustment in Response to External Shocks and Unexpected Developments?
The effectiveness of an emissions trading system in terms of reducing greenhouse gas emissions is mainly due to the magnitude of the specified emission cap. Assuming sufficient control, a quantitative emission target defined in such a way is quasi automatically achieved by the limited allocation of emission allowances. In functioning markets, this coincides with a somewhat higher allowance price a...read more