Assessing Emission Regulation in Europe: An Interactive Simulation Approach

Energy Journal, Vol. 26, No. 4, pp. 1-22, 2006

Posted: 14 Jun 2006

See all articles by Christoph Böhringer

Christoph Böhringer

University of Oldenburg - Economic Policy; Centre for European Economic Research (ZEW)

Tim Hoffmann

ZEW – Leibniz Centre for European Economic Research

Andreas Lange

University of Hamburg

Andreas Löschel

University of Muenster - Chair of Microeconomics, esp. Energy and Resource Economics

Ulf Moslener

Frankfurt School of Finance & Management gemeinnützige GmbH

Abstract

Implementation of an EU-wide emissions trading system by means of National Allocation Plans is at the core of the European environmental policy agenda. EU Member States must allocate their national emission budgets under the EU Burden Sharing Agreement between energy-intensive sectors that are eligible for European emissions trading and the remaining segments of their economies that will be subject to complementary domestic emission regulation. We show that such hybrid emission regulation may lead to substantial excess costs compared to a comprehensive emissions trading system covering all segments of the economy. Furthermore, the hybrid system associated with the current design of National Allocation Plans is likely to discriminate against sectors that are not part of the emissions trading scheme. The interested reader can make use of a web-based interactive simulation model in order to specify and evaluate alternative settings of the EU emissions trading system.

Suggested Citation

Bohringer, Christoph and Hoffmann, Tim and Lange, Andreas and Löschel, Andreas and Moslener, Ulf, Assessing Emission Regulation in Europe: An Interactive Simulation Approach. Energy Journal, Vol. 26, No. 4, pp. 1-22, 2006. Available at SSRN: https://ssrn.com/abstract=908498

Christoph Bohringer (Contact Author)

University of Oldenburg - Economic Policy ( email )

Centre for European Economic Research (ZEW) ( email )

D-68161 Mannheim
Germany
+49 6211235200 (Phone)
+49 6211235226 (Fax)

Tim Hoffmann

ZEW – Leibniz Centre for European Economic Research ( email )

P.O. Box 10 34 43
L 7,1 D-68161 Mannheim
Germany

Andreas Lange

University of Hamburg ( email )

Allende-Platz 1
Hamburg, 20146
Germany

Andreas Löschel

University of Muenster - Chair of Microeconomics, esp. Energy and Resource Economics ( email )

Universitätsstr. 14-16
48143 Munster
Germany

HOME PAGE: http://www.wiwi.uni-muenster.de/eroe

Ulf Moslener

Frankfurt School of Finance & Management gemeinnützige GmbH ( email )

Adickesallee 32-34
Frankfurt am Main, 60322
Germany

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