We provide a quantitative assessment of policy options to inform the 2021 review of the EU
Emissions Trading System (ETS) and raise climate ambition. We use a permit trading model …

Unlike standard supply-side policies, the market stability reserve (MSR) can be used as a
potent means of raising climate ambition. We calibrate an emissions trading model to the EU …

Reforms in 2015 and 2018 fundamentally changed the design of the EU Emissions Trading
System (ETS). The Market Stability Reserve (MSR) was created to increase resiliency to …

We develop a model of competitive intertemporal emissions trading under uncertainty with
supply-side controls. We introduce two sources of bounded rationality on the part of …

The stringency of the EU's Emission Trading System (ETS) is bound to be ratcheted-up to
deliver on more ambitious goals as formulated in the EU's Green Deal. Tightening the cap …

Abstract The Market Stability Reserve (MSR) was introduced into the European Union
Emissions Trading System to address a historical surplus of emission allowances and to …

We develop an emission permits trading model where covered firms can (1) utilize rolling
planning horizons to deal with uncertainty and (2) exhibit bounded responsiveness to supply …

According to the Phase IV (2021–2030) rules of the EU ETS, the total amount of emission
permits allocated to firms is not fixed but endogenous. This implies that a national climate …

Abstract The European Union's Emissions Trading System (EU ETS) is complemented by a
Market Stability Reserve (MSR). After a major revision of the EU ETS in 2018, the MSR …

Having experienced low prices for about a decade, the European Union Emissions Trading
System has been supplemented with the market stability reserve (MSR) that adjusts the …