Emissions Trading and Carbon Pricing

Emissions Trading Schemes are one of the main tools used for Climate Change Policy. The European Union Emissions Trading Scheme (EU ETS) is the main focus of our research, which investigates the role of carbon pricing for investment, operation and consumption choices.

Our Research in this sector:

Policy Overview

  • The policy framework underpinning and overarching emission trading schemes.

Free Allowance Allocation

  • Allocation of allowances in the EU ETS, National Allocation Plans.

Auctions

  • The role that auctions can play in the allocation of allowances in emissions trading schemes.

Leakage and Instruments to Address Leakage

  • Leakage of carbon emissions
  • Competitiveness issues relating to trading schemes
  • Border tax adjustments as instruments to reduce competitiveness concerns

Role of Carbon Prices

  • The role that carbon prices can play in climate change policy and social decision making.

Investment Response to Carbon Prices

  • Investment responses in the energy industry from carbon prices.

International and Non-CO2 Experience

  • Use of trading schemes internationally and for other emissions, notably SO2.

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