Daily Archives: 20 décembre 2019

Pervasive EUAs free allocation: the case of the steel industry

Sectors subject to international competition still benefit from free allocation of EU Allowances in Phase III of the EU ETS market. A frontier analysis in the steel industry show that most free permits are allocated to most polluting firms. Hence, we highlight that by protecting the EU steelmakers from international competition, free EUAs lead to a trade-off between the EU climate policy and the competition policy.