scholarly journals UK Emissions Trading from 2002–2004: Corporate Responses

2005 ◽  
Vol 16 (6) ◽  
pp. 993-1007 ◽  
Author(s):  
Malcolm Hill ◽  
Laurie McAulay ◽  
Adrian Wilkinson
Keyword(s):  
Emissions Trading ◽  
Cost Savings ◽  
Policy Instrument ◽  
Carbon Costs ◽  
Facilities Location ◽  
Emissions Trading Scheme ◽  
Trading Scheme ◽  
The Uk ◽  
The Impact ◽  
The Eu

The UK was the first country to implement emissions trading as a policy instrument to reduce greenhouse gas emissions across the whole of the economy. The paper therefore commences with a description of the UK Emissions Trading Scheme and then continues with a discussion of incentives for UK companies to engage in emissions trading. It then outlines a case for research of companies' experiences of “direct participation” in the Scheme, and presents results obtained from case studies of a set of companies which are “direct participants”. These illustrate the impact of emissions trading on income generation as well as cost savings. The paper then concludes with the observation that emissions trading will take on increased importance with the introduction of the EU Emissions Trading Scheme and the implementation of the Kyoto Protocol in 2005, and that further research is therefore required into energy and carbon costs and their possible influences on facilities location.

The Impossible Transplant of the EU Emissions Trading Scheme: The Challenge of Energy Market Regulation

2016 ◽  
Vol 6 (1) ◽  
pp. 59-85 ◽  
Author(s):  
Anatole Boute
Keyword(s):  
Emerging Economies ◽  
Emissions Trading ◽  
Energy Market ◽  
Market Regulation ◽  
The European Union ◽  
Emissions Trading Scheme ◽  
Trading Scheme ◽  
The Cost ◽  
The Impact ◽  
The Eu

AbstractFollowing the European Union (EU) experience, an increasing number of countries are establishing an Emissions Trading Scheme (ETS). The EU ETS often serves as a ‘model’ despite fundamental differences in the receiving environment. In the EU liberalized energy markets, carbon prices are intended to raise the cost of carbon-intensive energy and thereby stimulate cleaner alternatives. In contrast, many emerging economies continue to regulate energy investments and prices, which may insulate consumers and producers from the impact of an ETS. To avoid this risk, energy economists advocate EU-style energy market reforms as a prerequisite to the introduction of the ETS concept abroad. By focusing on the cases of China, Kazakhstan, and Russia, this article highlights the limits on the exportation of the EU liberalization model and argues that, instead of energy reform, the ETS must be reconceptualized as a mechanism that integrates the regulated energy market paradigm in emerging economies.

scholarly journals Does Carbon Risk Matter? Evidence of Carbon Premium in EU Energy-Intensive Companies

Energies ◽  
2021 ◽  
Vol 14 (7) ◽  
pp. 1855
Author(s):  
Pawel Witkowski ◽  
Adam Adamczyk ◽  
Slawomir Franek
Keyword(s):  
Emissions Trading ◽  
Energy Sector ◽  
Significant Problem ◽  
Eu Ets ◽  
Stable Carbon ◽  
Emissions Trading Scheme ◽  
Trading Scheme ◽  
The Impact ◽  
Over Time ◽  
The Eu

In this paper we have assessed the impact of the European Union’s Emissions Trading Scheme (EU ETS) on the level of the carbon premium. The aim of the study is to determine whether there is a stable carbon premium in energy-intensive sectors. Unlike other studies, our research sample included not only companies in the energy sector, but also entities classified as energy-intensive. In the research, we used our own criterion for allocating companies to a clean and dirty portfolio, which made it possible to make the estimation of the carbon premium more resistant to changes in the rules for allocation of emission allowances. We detected a positive, statistically significant carbon premium in the years 2003–2012 and a negative one in the years 2013–2015, but we did not detect a statistically significant carbon premium in the period 2016–2019. This means that there are no grounds for concluding that there is a stable, positive carbon premium for energy-intensive companies subject to the EU ETS over time. We have also noticed that a significant problem in studying the impact of the EU ETS on the carbon premium is the use of static portfolios of clean and dirty companies.

EU steel sector woes pose China challenges

2016 ◽  
Keyword(s):  
Emissions Trading ◽  
Content Type ◽  
Eu Membership ◽  
Emissions Trading Scheme ◽  
Steel Sector ◽  
Trading Scheme ◽  
The Uk ◽  
Eu Emissions Trading Scheme ◽  
The Eu ◽  
Opposition Parties

Subject The EU steel sector. Significance The EU steel sector is facing a challenge arising from global overcapacity -- and, in particular, surging Chinese exports. The UK industry is bearing the brunt of the EU sector's difficulties, as highlighted by the January 18 announcement by Tata Steel of 1,050 further UK job losses, including 750 at Port Talbot in Wales. Impacts Chinese exports will continue to increase their share of EU steel demand unless anti-dumping actions are stepped up. The UK sector is likely to continue bearing the brunt of EU steel sector adjustment, given the particular conditions it faces. However, the UK experience could be replicated to some extent elsewhere in the EU. UK steel's woes will be cited by opposition parties in the campaigns for the May Welsh Assembly elections and the EU membership referendum. Concerns about the steel industry's vulnerability may weaken attempts to toughen the EU Emissions Trading Scheme.

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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