| ID | 094937 |
| Title Proper | Grandfathering, auctioning and carbon leakage |
| Other Title Information | assessing the inconsistencies of the new ETS directive |
| Language | ENG |
| Author | Clo, Stefano |
| Publication | 2010. |
| Summary / Abstract (Note) | The new ETS Directive defines three different allocation rules, granting exemption from auctioning to those sectors exposed to the risk of Carbon Leakage. This article analyses the inconsistencies that characterize this new allocation rule and it concludes that the methodology designed to assess the risk of Carbon Leakage is more politically driven than economically grounded. The results of the Carbon Leakage risk assessment reveal that grandfathering is going to be the dominant allocation rule during the third phase also. However, not only the exemption from auctioning is unlikely to mitigate Carbon Leakage, instead of improving the allocation transparency and granting harmonization of higher rules but also the new ETS allocation rule is likely to increase the distortions of competition, worsening rather than improving the harmonization within the ETS. |
| `In' analytical Note | Energy Policy Vol. 38, No. 5; May 2010: p.2420-2430 |
| Journal Source | Energy Policy Vol. 38, No. 5; May 2010: p.2420-2430 |
| Key Words | Climate Package ; Carbon Leakage ; Auctioning |