Search Result

Srl

Item

ID: 150055

Carbon pricing in the EU: evaluation of different EU ETS reform options / Brink, Corjan; Vollebergh, Herman R J ; Werf, Edwin van der

Brink, Corjan	Journal Article
	0 Rating(s) & 0 Review(s)

Summary/Abstract

This paper studies various options to support allowance prices in the EU Emissions Trading System (ETS), such as adjusting the cap, an auction reserve price, and fixed and variable carbon taxes in addition to the EU ETS. We use a dynamic computable general equilibrium model that explicitly allows for allowance banking and for a detailed cost-effectiveness analysis at the EU Member State level. We find that tightening the cap provides an ad hoc solution to the fundamental issue of the robustness of the effective carbon price, while introducing a price component to the ETS brings structural carbon price support in times of negative demand shocks for emission allowances. These price-based policies still benefit from the intertemporal flexibility through the banking provision in the EU ETS by re-allocating emissions over time with stronger emission reductions in early years and emission increases in later years. A higher emission price has a larger negative impact on the new Member States' economies than on other Member States. Furthermore, introducing a carbon tax in addition to the EU ETS decreases the price of allowances, resulting in welfare gains for net buyers of allowances while net sellers are worse off.

Key Words

Banking ; Computable General Equilibrium ; Carbon Tax ; Price Floor ; European Union Emission Trading System ; Auction Reserve Price

In Basket

Export

ID: 150625

Firm-specific impacts of CO2 prices on the stock market value of the Spanish power industry / Da SilvaPatricia Pereira; Moreno, Blanca ; Figueiredo, Nuno Carvalho

Da SilvaPatricia Pereira	Journal Article
	0 Rating(s) & 0 Review(s)

Summary/Abstract

European Union carbon emissions allowances (EUA) price fluctuations can affect electricity companies' stock market values as these oscillations may change firms' profitability and thus investors' decisions. This outcome can differ not only contingent on the EU ETS Phase, but also on firms' generation mix. Moreover, stock markets may react differently to EUA increases in comparison to decreases, thus asymmetrically.

Key Words

Energy Prices ; Electricity Sector ; European Union Emission Trading System ; Vector Error Correction Analysis

In Basket

Export