Almost all modelled emissions scenarios consistent with the Paris Agreement's target of
limiting global temperature increase to well below two degrees include the use of …

We use economic analysis to evaluate grandfathering, auctioning, and benchmarking
approaches for allocation of emissions allowances and then discuss practical experience …

The amount of capital required to transition energy systems to low-carbon futures is very
large, yet analysis of energy systems change has been curiously quiet on the role of capital …

In this article the problem of credible commitment in carbon policy is discussed. Investors
favour long-term predictability of the policy, but without any external enforcement …

A well-known result about market power in emission permit markets is that efficiency can be
achieved by full free allocation to the dominant firm. I show that this result breaks down when …

Since the crash of carbon prices in phase II of the European Union Emissions Trading
System (EU ETS), many have argued that the low price mirrors structural failures requiring …

Most previous cap and trade programs have distributed emission allowances for free to
incumbent producers. However, in the electricity sector the value of CO2 allowances may be …

I examine the Coasean independence property in a large multinational cap-and-trade
scheme for greenhouse gas emissions, the EU Emissions Trading System. I analyze …

Carbon pricing decisions by governments are prone to time-inconsistency, which causes the
private sector to underinvest in emission-reducing technologies. We show that incentives for …

This paper investigates abatement incentives for allowance allocation based on output and
sector specific benchmarks, here called output based allocation or benchmarking. Special …