Working Papers, Department of Economics, Aarhus School of Business, University of Aarhus
Gert Tinggaard Svendsen
How to design Greenhouse Gas Trading in the EU?
() and Morten Vesterdal
A new and remarkable Green Paper about how to
trade Greenhouse gases (GHG) in the EU has recently been published by the
Commission of the European Union. This to achieve the stated 8% reduction
target level. The Green Paper raises ten questions about how greenhouse gas
permit trading should be designed in the EU before year 2005. These ten
questions can be compressed into four main issues, namely target group,
allocation of emission allowances, how to mix emission trading with other
instruments and fourth enforcement. In the literature, there is a strong
need to guide decision-makers and stimulate academic debates concerning the
actual design of a simple and workable GHG market model for the EU. This
model must take both economic, administrative and political concerns into
account so that it is feasible in practice. Based on our findings, we
therefore develop a policy recommendation concerning the future design of
GHG permit trading in the EU.
Keywords: European Union; Energy policy; Greenhouse gases; CO2 emission; Permit trading design; Kyoto protocol; Electricity sector; (follow links to similar papers)
JEL-Codes: Q28; (follow links to similar papers)
15 pages, January 1, 2001
Before downloading any of the electronic versions below
you should read our statement on
for viewing Postscript files and the
Acrobat Reader for viewing and printing pdf files.
Full text versions of the paper:
Questions (including download problems) about the papers in this series should be directed to Helle Vinbaek Stenholt ()
Report other problems with accessing this service to Sune Karlsson ()
or Helena Lundin ().
Design by Joachim Ekebom