Discussion or working paper
Emissions Trading, CDM, JI, and More - The Climate Strategy of the EU
AbstractThe objective of this paper is to assess the likely allocation effects of the current cli-mate protection strategy as it is laid out in the National Allocation Plans (NAPs) for the European Emissions Trading Scheme (ETS). The multi-regional, multi-sectoral CGE-model DART is used to simulate the effects of the current policies in the year 2012 when the Kyoto targets need to be met. Different scenarios are simulated in or-der to highlight the effects of the grandfathering of permits to energy-intensive instal-lations, the use of the project-based mechanisms (CDM and JI), and the restriction imposed by the supplementarity criterion.
KeywordsKyoto targets, EU, EU emissions trading scheme, National Allocation Plans, CDM and JI, computable general equilibrium model, DART
JEL classificationD58, F18, Q48, Q54