Hlavac, Marek (2010): The Distribution of European Union Allowances (EUAs): Windfall Profits, Free Allocation and Auctions.
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The first half of the paper provides a brief overview of the European Union’s Emission Trading System (EU ETS), and discusses how emission allowances have been allocated during the first two phases of the trading scheme. I then discuss the effects of auctioning off more emission allowances during Phase III of the EU ETS. I conclude that such a change would reduce the windfall profits of the initial allowance holders, and provide additional revenues that participating governments could use to support a variety of policies, some of which I discuss.
|Item Type:||MPRA Paper|
|Original Title:||The Distribution of European Union Allowances (EUAs): Windfall Profits, Free Allocation and Auctions|
|Keywords:||environmental economics; emissions trading; European Union; windfall profits|
|Subjects:||Q - Agricultural and Natural Resource Economics; Environmental and Ecological Economics > Q5 - Environmental Economics
P - Economic Systems > P2 - Socialist Systems and Transitional Economies > P26 - Political Economy; Property Rights
|Depositing User:||Marek Hlavac|
|Date Deposited:||04. Aug 2010 00:04|
|Last Modified:||16. Feb 2013 01:01|
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