Sato, Misato;
Rafaty, Ryan;
Calel, Raphael;
Grubb, Michael;
(2022)
Allocation, allocation, allocation! The political economy of the development of the European Union Emissions Trading System.
WIREs Climate Change
10.1002/wcc.796.
(In press).
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Abstract
The European Union's pioneering carbon Emissions Trading System, the EU ETS, has inspired countries around the world to launch their own CO_{2} markets. This paper analyses the evolution of the EU ETS from a political economy perspective, emphasizing the interaction of economic principles and political interests at pivotal moments, and showing how each compromise changed the scope for future design choices. We focus on the allowance allocation issue, which provides a window into the complex tug-of-war between economic efficiency and the politics of distribution. Our account highlights the dynamic nature of CO_{2} market reform, and provides lessons that can help inform the design of more stable and effective CO_{2] markets in the future.
| Type: | Article |
|---|---|
| Title: | Allocation, allocation, allocation! The political economy of the development of the European Union Emissions Trading System |
| Open access status: | An open access version is available from UCL Discovery |
| DOI: | 10.1002/wcc.796 |
| Publisher version: | https://doi.org/10.1002/wcc.796 |
| Language: | English |
| Additional information: | © 2022 The Authors. WIREs Climate Change published by Wiley Periodicals LLC. This is an open access article under the terms of the Creative Commons Attribution License (http://creativecommons.org/licenses/by/4.0/). |
| Keywords: | allowance allocation, carbon pricing, emissions trading, EU ETS, industry lobby, political economy |
| UCL classification: | UCL > Provost and Vice Provost Offices > UCL BEAMS > Faculty of the Built Environment UCL > Provost and Vice Provost Offices > UCL BEAMS > Faculty of the Built Environment > Bartlett School Env, Energy and Resources UCL > Provost and Vice Provost Offices > UCL BEAMS UCL |
| URI: | https://discovery-pp.ucl.ac.uk/id/eprint/10153479 |
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