Publication type: Article in scientific journal
Type of review: Peer review (publication)
Title: Higher price, lower costs? : minimum prices in the EU emissions trading scheme
Authors: Abrell, Jan
Rausch, Sebastian
Yonezawa, Hidemichi
DOI: 10.1111/sjoe.12279
Published in: The Scandinavian Journal of Economics
Volume(Issue): 121
Issue: 2
Pages: 446
Pages to: 481
Issue Date: 2017
Publisher / Ed. Institution: Wiley
ISSN: 0347-0520
Language: English
Subjects: Emissions trading; General equilibrium; Partitioned regulation
Subject (DDC): 363: Environmental and security problems
Abstract: In this paper, we examine the introduction of a price floor in an emissions trading system (ETS) when some emissions are regulated outside the ETS. We theoretically characterize the conditions under which a price floor enhances welfare. Using a numerical simulation model of the European Union (EU), we find that moderate minimum prices in the EU ETS can reduce the costs of EU climate policy by up to 30 percent. We also find that, because of tax-interaction effects, the optimal minimum price in the EU ETS should be about four times higher than the average marginal abatement cost in non-ETS sectors.
Fulltext version: Published version
License (according to publishing contract): Licence according to publishing contract
Departement: School of Management and Law
Organisational Unit: Center for Energy and Environment (CEE)
Appears in collections:Publikationen School of Management and Law

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