scholarly journals The Making of the 2003 EU Emissions Trading Directive: An Ultra-Quick Process due to Entrepreneurial Proficiency?

2005 ◽  
Vol 5 (1) ◽  
pp. 1-23 ◽  
Author(s):  
Jørgen Wettestad
Keyword(s):  
Emissions Trading ◽  
Decision Making Process ◽  
Global Policy ◽  
Track Record ◽  
Climate Policies ◽  
The Us ◽  
Emissions Trading Scheme ◽  
Policy Experiment ◽  
Trading Scheme ◽  
The Eu

The EU emissions trading scheme has been characterized as one of the most farreaching and radical environmental policies for many years, and “the new grand policy experiment.” Given the EU's earlier resistance to this market-based instrument with no international track record and with US origins, the EU decision-making process, which took less than two years, can be characterized as a puzzlingly ultra-quick political “pregnancy.” In order to understand this, it is necessary to take three explanatory perspectives—and the interaction between them—into account. First, the emissions trading issue was more mature within the EU system than immediately apparent, given that emissions projections were worrying and no effective common climate policies had been adopted. Second, the Commission acted as a strong and clever policy entrepreneur, dealing with other basically positive EU bodies. Third, when the US pulled out of the Kyoto process in March 2001, it provided a window of opportunity for the EU to take the reins of global policy leadership.

scholarly journals The Price Determinants of the EU Allowance in the EU Emissions Trading Scheme

2018 ◽  
Vol 10 (11) ◽  
pp. 4009 ◽  
Author(s):  
Chune Chung ◽  
Minkyu Jeong ◽  
Jason Young
Keyword(s):  
Emissions Trading ◽  
Causal Effect ◽  
Forecast Error ◽  
Ghg Emissions ◽  
Relative Effect ◽  
Causality Test ◽  
Coal Price ◽  
Emissions Trading Scheme ◽  
Trading Scheme ◽  
The Eu

The Kyoto Protocol came into effect in 1997 to curb greenhouse gas (GHG) emissions and to address the problem of climate change. The Protocol includes a market-based mechanism designed to offset GHG emissions, called the emissions trading scheme (ETS), allowing companies to “trade” their shortage or surplus allowance. This study examines the determinants of the EU allowance (EUA) price in Phase 3 of the EU ETS (2013–2017). First, the causality between the EUA price and other variables is determined using a Granger causality test. Second, the correlation between the EUA price and each variable is measured using a VECM estimation and an impulse response function. Finally, the relative effect of each variable on the EUA price is determined using a forecast error variance decomposition. The results show that the EUA price has a causal effect on the prices of electricity and natural gas. Second, all variables, except the minimum temperature, show a positive relationship with the EUA price. Furthermore, when unexpected shocks occur, the EUA price shows the highest response to its past price, followed by the electricity price. Third, the past EUA price has the most influence on the EUA price, followed by the coal price.

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