(De)Centralized Law-making in the Revised EU ETS

Carbon & Climate Law Review, Vol. 3, 2009

Amsterdam Center for Law & Economics Working Paper No. 2009-09

18 Pages Posted: 16 Sep 2009 Last revised: 30 Mar 2011

Date Written: August 7, 2009


After a highly pressurized political process, the European Parliament and the Council adopted Directive 2009/29/EC which will amend Directive 2008/87/EC as to ‘improve and extend the European Emissions Trading Scheme (EU ETS)’ in April of 2009. The changes in the so-called third phase of the EU ETS will be substantial, altering some of the essential features of the EU ETS. This paper discusses these changes in relation to two key aspects of the EU ETS – cap-setting and allowance allocation. In relation to both aspects, changes regarding the level of governance in terms of law-making competences are foreseen. This paper analyses the desirability of these changes in reference to the economic theory of federalism in order to ascertain whether it provides a justification beyond political and legal arguments provided by the European institutions and the Member States.

Keywords: Economic theory of Federalism, Law-making, Centralization, Decentralization, European Emissions Trading Scheme, Post-2012 Environmental Policy

JEL Classification: K32, K33

Suggested Citation

van Zeben, Josephine A. W., (De)Centralized Law-making in the Revised EU ETS (August 7, 2009). Carbon & Climate Law Review, Vol. 3, 2009, Amsterdam Center for Law & Economics Working Paper No. 2009-09, Available at SSRN: https://ssrn.com/abstract=1415666 or http://dx.doi.org/10.2139/ssrn.1415666

Josephine A. W. Van Zeben (Contact Author)

Wageningen University and Research ( email )

Hollandseweg 1
Wageningen, 6706KN

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