Cambridge Catalog  
  • Your account
  • View basket
  • Help
Home > Catalog > Pricing Carbon
Pricing Carbon
AddThis

Details

  • 38 tables
  • Page extent: 390 pages
  • Size: 228 x 152 mm
  • Weight: 0.75 kg
Add to basket

Hardback

 (ISBN-13: 9780521196475)

In stock

$77.00 (C)
Pricing Carbon
Cambridge University Press
9780521196475 - Pricing Carbon - The European Union Emissions Trading Scheme - By A. Denny Ellerman, Frank J. Convery, Christian De Perthuis, Emilie Alberola, Barbara K. Buchner, Anaïs Delbosc, Cate Hight, Jan Horst Keppler and Felix C. Matthes
Index

Index

abatement of emissions 7, 158–159, 191–192, 290–291

anecdotal evidence 185–191

costs

See costs of EU ETS

geographic distribution 168–174

macro estimates 159–161

calculation of counterfactual 162

EU-wide estimate 161–168

sectoral estimates

aluminium industry 224–226

cement sector 196

iron and steel industry 204–207

oil refining sector 215–216

through fuel-switching 174–175, 192

simulation modelling 178–182

United Kingdom power sector 183–185

variable potential for 175–178

Alberola, Emilie 144, 145

allowance allocation 4, 5, 23, 32–33, 33–35, 82–84, 123–126, 299–300

allocation to installations 60–74

assignment of shortage to power sector linked to non-trade exposure 72–74

auctioning 61–64

benchmarking 64–67

grandfathering 61–64

new entrants and closure provisions 67–72

cap-setting in first compliance period (2005–7)

conditions of implementation 36–41

data problems 37–38

impossible deadlines 38–41

modest ambition and emissions uncertainty 36–37

co-ordination and guidance 41–42

results 42–48

cap-setting in second compliance period (2008–12)

conditions of implementation 48

co-ordination and guidance 51–53

results 54–60

controversy about 288–289

effects of allocation 25, 85

effects of free allocation 85, 119–121

effects on extent of trading 87–100

effects on short-term profitability and competitiveness 100–101

financial and operational effects 86–87

allocation-determining production 109–112

coal plant utilization in Spain 112–114

oil-refining sector as case study of financial effects 101

inter-refinery allocation differences 105–109

investment effects 114–119

price effects 85–86

energy prices and 301–302

players in market 127–131

financial intermediaries 129–131

firms 127–131

post-2012 changes 74–81, 84

auctioning 34

cap-setting 79–81

harmonization 78–79

prices

See prices

aluminium industry

economic environment 227

emissions and opportunities for abatement 224–226

impact of EU ETS on competitiveness 227–232, 233

ex ante studies 227

ex post assessments 227–232

production 224

Arcelor 208

assigned amount units (AAUs) 275–279

Attlee, Clement 20

auctioning of allowances 61–64

post-2012 changes 34

Austria 261

aviation industry 264–266

Belgium

auctioning of allowances 62

electricity sector 94

opt-out provision 263

benchmarked allocation 64–67

best available technology (BAT) 66

Böhringer, Christoph 240

Bolkestein, Frits 27

Brazil 281

Bulgaria 45, 266–267, 270

Bunn, Derek 145

burden-sharing agreement 17–19, 29, 239

Burke, Edmund 2

Bush, George W. 18

BusinessEurope 11

cap-and-trade systems 32, 289

Capros, Pantelis 21

cap-setting

first compliance period (2005–7)

conditions of implementation 36–41

data problems 37–38

impossible deadlines 38–41

modest ambition and emissions uncertainty 36–37

co-ordination and guidance 41–42

results 42–48

post-2012 changes 79–81

second compliance period (2008–12)

conditions of implementation 48

co-ordination and guidance 51–53

results 54–60

carbon leakage 194, 233–234

carbon price drivers 143–145, 303–310

data releases and regulatory influences 144

energy prices 144–145

long-run carbon–electricity hypothesis 303–305

short-run electricity–carbon hypothesis 305–308

short-run fuel-switching hypothesis 308–310

weather conditions 145

carbon tax 2

failure of EU proposal 16

cash contracts 135

cement sector 73

economic environment 197

emissions and opportunities for abatement 196

impact of EU ETS on competitiveness 197–203, 233

ex ante studies 197–199

ex post analysis 199–202

production 195

CEMEX UK 190

Center for Clean Air Policy (US) 21

certified emission reduction (CER) 135, 275–279, 279–282

See also Clean Development Mechanism (CDM)

Chen, Yihsu 243

Chevallier, Julien 144, 145

Chicago Climate Exchange (CCX) 273

China

aluminium industry 226

emissions reduction in 281

iron and steel industry 208

Clean Development Mechanism (CDM) 2, 17, 25, 50, 52, 60, 271, 290

closure of installations 5, 67–72

coal plants 118, 294

effects of free allocation 112–114

coal prices 167

Coase, Ronald 13, 85

Community Independent Transaction Log (CITL) 89, 95, 150

competitiveness 7, 193–195, 233–234, 290, 291–292

aluminium industry 227–232, 233

ex ante studies 227

ex post assessments 227–232

cement sector 197–203, 233

ex ante studies 197–199

ex post analysis 199–202

effects of free allocation 100–101

iron and steel industry 208–213, 233

ex ante studies 208–210

ex post analysis 210–213

oil-refining sector 219–224, 233

ex ante studies 219

ex post analysis 219–222

consultancy costs 251

Corus 208

cost-of-service regulation 86

costs of EU ETS 7, 235, 258–259, 289, 292

defining cost 235–238

ex ante evaluations 239–241

ex post evidence 241–245

survey

early-implementation costs 248–250

methodology 246–248

monitoring, reporting and verification costs 250–252

trading costs 253–255

transaction costs 245–246, 248, 255–258

Côte d'lvoire 281

Council of Ministers 10, 75

Emissions Trading Directive and 24

coverage of EU ETS 4, 5

Crocker, Thomas D. 13

Curry, Jim 27

Cyprus

new entrants' reserve 69

trading relationships 153

Czech Republic

abatement of emissions 188–189

electricity sector 95

extent of trading in EU ETS 93, 98

Dales, John H. 2, 13

data problems 37–38

Day, Catherine 27

decentralization of allocation 34–35, 82, 83

Delbeke, Jos 26

Delbosc, Anaïs 127, 256

Demailly, Damien 198, 210

Denmark 20, 27, 123

auctioning of allowances 62, 63

benchmarking 66

extent of trading in EU ETS 100

Joint Implementation (JI) projects 283

national allocation plan (NAP) 54

developing countries, emissions reduction in 279–282

Doyle Report 75

economic environment

aluminium industry 227

cement sector 197

iron and steel industry 207–208

oil-refining sector 218

economic growth 163, 166, 170

Egenhofer, Christian 29

electricity sector 8, 65, 94, 167, 293–294, 328

coal plants 118, 294

effects of free allocation 112–114

detection of investment effects 116–119

fuel-switching 174–175, 192

simulation modelling 178–182

United Kingdom 183–185

variable potential for 175–178

gas-fired plants 118, 294

combined-cycle gas turbine (CCGT) plants 118, 295

markets 300–301

manipulation 316–317

nuclear plants 294

prices 144–145, 295, 297, 299

econometric evidence for relationship with carbon prices 310–317

formation of carbon and electricity prices 303–310

general role of CO2 allowances in 301–302

long-run carbon–electricity hypothesis 303–305

production mix 294–298

load-curves 325

renewable energy sources 294

rents generated by EU ETS 318–328

calculating type I rents 323–328

pass-through 318–320

windfall profits 320–322

special role in EU ETS 299–300

Ellerman, A. Denny 14, 38, 42, 113, 115, 125, 184

emissions abatement

See abatement of emissions

emissions trading

See trading of emissions

end-of-period hypothesis 305

energy

See electricity sector

enforcement of EU ETS 5

environmental economics 1

E-Simulate model 178

Estonia 95

European Climate Change Programme Working Group on Emissions Trading 75

European Commission 10, 11, 83

allowance allocation and 33

co-ordination and guidance

first compliance period (2005–7) 41–42

second compliance period (2008–12) 51–53

European Economic Area 267–269, 270

European Environment Agency (EEA) 11

European Parliament 11

Doyle Report 75

Emissions Trading Directive and 24

European Union (EU) 3, 4, 29

burden-sharing agreement 17–19, 29, 239

institutions 10–13

European Union Emissions Trading Scheme (EU ETS) 1–4, 28–31

Emissions Trading Directive 4, 8, 24–25, 33, 87, 124

key features 4–5

Linking Directive 25–26, 271–273

origins and development 9–10

burden-sharing agreement and Kyoto–EU ETS link 17–19

early actions by member states 19–21

European intellectual platform 14–15

Green Paper (2000) 21–23

leadership 26–28

legislative and institutional context 10–13

political foundations 16–17

theoretical foundations 12

Review Report 74

See under individual topics

exchanges 133

Chicago Climate Exchange (CCX) 273

expectations, calibration of 141–142

Fazekas, Dora 63

Fezzi, Carlo 145

FIELD 21

financial intermediaries 129–131

Finland

extent of trading in EU ETS 100

opt-in provision 261

firms 127–129

forward contracts 135–136

Framework Convention on Climate Change 4

See also Kyoto Protocol

France

electricity sector 300

extent of trading in EU ETS 93, 98

Joint Implementation (JI) projects 283

national allocation plan (NAP) 34, 53, 54

oil-refining sector 102–104, 108

fuel costs 19, 22, 176

fuel-switching 174–175, 192, 308–310

simulation modelling 178–182

United Kingdom power sector 183–185

variable potential for 175–178

future contracts 135–136

Galitsky, Christina 215

gas prices 167, 295

gas-fired plants 118, 294

combined-cycle gas turbine (CCGT) plants 118, 295

general equilibrium models 238

Germany 23, 25, 27, 45, 61

abatement of emissions 168, 170, 171

aluminium industry 229, 232

auctioning of allowances 63, 64

benchmarking 67

cement sector 202

closure provisions 68

costs of EU ETS 243

data problems 38

electricity sector 94, 294

extent of trading in EU ETS 92, 93, 98, 99

Joint Implementation (JI) projects 283

national allocation plan (NAP) 34, 47

new entrants' reserve 68, 69

trading relationships 154

Gielen, Dolf 209

global reach of EU ETS 8, 260–261, 285–286

CER market 275–279

emissions reduction in developing countries 279–282

EU ETS Linking Directive 25–26, 271–273

expanding emissions coverage in developed nations and inside EU 282–285

expansion of ETS coverage by 20% by 2012 269–271

inclusion of aviation during second trading period 264–266

expanding geographic scope of scheme 266–269

Bulgaria and Romania 266–267, 270

incorporating nations of European Economic Area 267–269, 270

permanent opt-in provision 261–263

role of EU ETS in world carbon market 273–275

temporary opt-out provision 263–264

Gore, Al 17

grandfathering 61

Greece

extent of trading in EU ETS 92

national allocation plan (NAP) 39

oil-refining sector 102–104, 108

trading relationships 152

gross domestic product (GDP) 163, 166, 170

harmonization 101

post-2012 changes 78–79

Herfindahl–Hirschman Index (HHI) 128

Hourcade, Jean-Charles 199

Hungary 68

Iceland 267, 268

India

emissions reduction in 281

iron and steel industry 208

information shock 141–142

installations

allocation to 60–74

assignment of shortage to power sector linked to non-trade exposure 72–74

auctioning and grandfathering 61–64

benchmarking 64–67

new entrant and closure provisions 67–72

closure of 5, 67–72

trading relationships between EU ETS installations 152–154

institutional development 127

players in EUA market 127–131

financial intermediaries 129–131

firms 127–129

International Civil Aviation Organization (ICAO) 265

international trade 74, 233

aluminium industry 226

cement industry 197

international trade effects 74

iron and steel industry 208

oil industry 216

International Transaction Log (ITL) 272

investment effects of free allocation 114–119

detection of investment effects 116–119

long-term effects 114–116

Ireland

auctioning of allowances 63

cement sector 197

costs of EU ETS 246

survey methodology 246–248

extent of trading in EU ETS 92

iron and steel industry

economic environment 207–208

emissions and opportunities for abatement 204–207

impact of EU ETS on competitiveness 208–213, 233

ex ante studies 208–210

ex post analysis 210–213

production 203–204

Italy 42

auctioning of allowances 62

benchmarking 66

electricity sector 94

extent of trading in EU ETS 92, 93, 98

national allocation plan (NAP) 39

trading relationships 153

Joint Implementation (JI) 17, 25, 50, 52, 60, 271, 283

Kemfert, Claudia 240

Kenya 281

Keynes, John M. 15

Klaassen, Ger 14

Korea (South) 281

Krugman, Paul 193

Kyoto Protocol 4, 5, 29, 49, 239, 240, 271, 273

Kyoto–EU ETS link 17–19, 25–26

negotiations 16–17

Lacombe, Romain 215, 222

Latvia

national allocation plan (NAP) 54

opt-in provision 261

Liechtenstein 267, 268

linkages

See global reach of EU ETS

Lithuania 63

load-curves 325

long-run carbon–electricity hypothesis 303–305

Luxembourg

auctioning of allowances 62

trading relationships 153

McGuinnes, Meghan 184

Malta 153

Mansanet-Bataller, Maria 144, 145

Mantzos, Leonidas 21

marginal cost of abatement 238, 304

market development 122–123, 156–157, 289–290

electricity sector 300–301

manipulation 316–317

ex post evidence of extent of trading 150–152

international market 154–156

trading relationships between EU ETS installations 152–154

first period 123–126

institutional development 127

players in EUA market 127–131

price development 140

carbon price drivers 143–145, 303–310

information shock and calibration of expectations 141–142

launching stage 140–141

relationship between EUAs of different maturities 146–148

second period 141–142, 142–143

volatility 143–145

trading products 135–138

cash contracts 135

forward or future contracts 135–136

options 136–138

spot contracts 135, 139

swaps 136

transaction volumes 138–139

types of transactions 132–133

bilateral transactions 132

organized exchanges 133

over-the-counter transactions 132–133

market failures 13

Marshall, Lord 19

Matthes, Felix C. 68

Mexico 281

Mittal Steel 208

monitoring of EU ETS 5

costs 250–252

Montgomery, W. David 13

Monti, Marco 27

Moreira da Silva, Jorge 28

Moriguchi, Yuichi 209

Mortimer, Edward 29

national allocation plans (NAPs) 33, 34, 79, 82, 83, 84, 98, 123, 240

first compliance period (2005–7)

conditions of implementation 36–41

co-ordination and guidance 41–42

data problems 37–38

impossible deadlines 38–41

modest ambition and emissions uncertainty 36–37

results 42–48

second compliance period (2008–12)

conditions of implementation 48

co-ordination and guidance 51–53

results 54–60

Neruda, Pablo 3

Netherlands 20

aluminium industry 229

auctioning of allowances 62, 64

costs of EU ETS 243

electricity sector 294

opt-in provision 261

opt-out provision 263

trading relationships 153

Neuhoff, Karsten 243

new entrants' reserve 5, 67–72

Nietzsche, Friedrich 9

Nigeria 281

Norway 267–269, 270

nuclear plants 294

oil prices 167, 217

oil-refining sector

allocation determining production 109–112

case study of effects of free allocation 101

economic environment 218

emissions and opportunities for abatement 215–216

impact of EU ETS on competitiveness 219–224, 233

ex ante studies 219

ex post analysis 219–222

inter-refinery allocation differences 105–109

production 213–215

opt-in provision 261–263

options 136–138

opt-out provision 263–264

origins and development of EU ETS 9–10

burden-sharing agreement and Kyoto–EU ETS link 17–19

early actions by member states 19–21

European intellectual platform 14–15

Green Paper (2000) 21–23

leadership 26–28

legislative and institutional context 10–13

political foundations 16–17

theoretical foundations 12

over-the-counter transactions 132–133

Paltsev, Sergey 240

Parsons, John 125

pass-through 318–320

perfluorocarbon (PFC) emissions 232

Pigou, Arthur C. 13

Point Carbon 245

Poland 42

abatement of emissions 189

auctioning of allowances 62

benchmarking 66

closure provisions 68

electricity sector 95

extent of trading in EU ETS 93, 98

national allocation plan (NAP) 53

new entrants' reserve 69

trading relationships 154

Ponssard, Jean-Pierre 198

Portugal

abatement of emissions 186

cement sector 202

power generation

See electricity sector

prices 140, 156–157, 287

carbon price drivers 143–145, 303–310

data releases and regulatory influences 144

energy prices 144–145

long-run carbon–electricity hypothesis 303–305

short-run electricity–carbon hypothesis 305–308

short-run fuel-switching hypothesis 308–310

weather conditions 145

certified emission reduction (CER) price relationships 276–279

effects of free allocation 85–86

energy prices 144–145, 295, 297, 299

econometric evidence for relationship with carbon prices 310–317

formation of carbon and electricity prices 303–310

general role of CO2 allowances in 301–302

long-run carbon–electricity hypothesis 303–305

information shock and calibration of expectations 141–142

launching stage 140–141

relationship between EUAs of different maturities 146–148

second period 141–142, 142–143

volatility 148–150

production

allocation-determining 109–112

aluminium industry 224

cement sector 195

electricity sector 294–298

load-curves 325

iron and steel industry 203–204

oil-refining sector 213–215

profitability effects of free allocation 100–101

project-based emissions reductions 5

property rights 13

Quirion, Philippe 198, 210

reduction in emissions

See abatement of emissions

refining sector

See oil-refining sector

Reguant, Mar 113

Reilly, John 240

Reinaud, Julia 219, 231

relocation of industrial activities 194

renewable energy sources 294

rents generated by EU ETS 318–328

calculating type I rents 323–328

pass-through 318–320

windfall profits 63, 77, 86, 236, 320–322

reporting costs 250–252

Romania 45, 266–267, 270

Roo, Alexander de 28

Russia 30

emissions reduction in 283

Kyoto Protocol and 18

SAB Miller 189

seasonal load 180

short-run electricity–carbon hypothesis 305–308

short-run fuel-switching hypothesis 308–310

Sijm, Jos 243, 318

Skea, Jim 15

Slovakia 57

new entrants' reserve 69

trading relationships 154

Slovenia

extent of trading in EU ETS 92

national allocation plan (NAP) 54

new entrants' reserve 69

opt-in provision 261

Smale, Robin 219

social costs 13

Sorrell, Steve 15

South Africa 281

Spain

abatement of emissions 186

benchmarking 66, 67

cement sector 197

coal plant utilization 112–114

costs of EU ETS 243

electricity sector 94

extent of trading in EU ETS 92, 93, 98, 100

Joint Implementation (JI) projects 283

national allocation plan (NAP) 54

trade effects 74

spot contracts 135, 139

steel industry

See iron and steel industry

Sutherland, Peter 27

Sweden

benchmarking 66

data problems 38

electricity sector 294

extent of trading in EU ETS 100

opt-in provision 261

Szabo, László 198

Tata Steel 208

taxation 2

carbon tax 2, 9

failure of EU proposal 16

United Kingdom 19

Tietenberg, T. H. 14

total cost of abatement 238

trade, international

See international trade

trading of emissions 2, 9, 287

costs 253–255

effects of free allocation 87–100

ex post evidence of extent of trading 150–152

international market 154–156

trading relationships between EU ETS installations 152–154

extent of trading in EU ETS 89–98

institutional development 127

players in EUA market 127–131

prices

See prices

strategies 7

theoretical foundations 12

trading products 135–138

cash contracts 135

forward or future contracts 135–136

options 136–138

spot contracts 135, 139

swaps 136

transaction volumes 138–139

types of transactions 132–133

bilateral transactions 132

organized exchanges 133

over-the-counter transactions 132–133

United Kingdom 19–20, 27

United States of America 3, 13–14, 21

transactions

transaction costs 7, 245–246, 248, 255–258

types of transactions 132–133

bilateral transactions 132

organized exchanges 133

over-the-counter transactions 132–133

volume 138–139

transfers 235, 237

Trotignon, Raphaël 127, 256

Ukraine 283

Union of Industrial and Employers' Confederations of Europe (UNICE) 12, 23

United Kingdom 61

abatement of emissions 168, 187–188

aluminium industry 229

auctioning of allowances 64

benchmarking 66

electricity sector 94, 187–188

fuel-switching 183–185, 309

emissions trading in 19–20, 27

extent of trading in EU ETS 92, 93, 98, 99

iron and steel industry 208

national allocation plan (NAP) 54, 99

new entrants' reserve 68

oil-refining sector 110–112

opt-out provision 263

trade effects 74

trading relationships 154

United States of America 28, 30

Acid Rain Program 14, 35

emissions trading in 3, 13–14, 21

NOx Budget Program 35

SO2 trading programme 65

verification costs 250–252

verified emission reduction credits (VERs) 273

volatility of prices 148–150

Walker, Neil 190, 198

Wallström, Margot 25, 27

weather conditions 293

as carbon price driver 145

welfare cost 238

windfall profits 63, 77, 86, 236, 320–322

Worrell, Ernst 215

Wrigglesworth, Mike 28




© Cambridge University Press
printer iconPrinter friendly version AddThis