Article published in Energy Economics – Oct 2017
Output-based allocations (OBAs) are typically used in emission trading systems (ETS) with a fixed cap to mitigate leakage in sectors at risk. Recent work has shown they may also be welfare enhancing in markets subject to supply and demand shocks by introducing some flexibility in the total cap, resulting in a carbon price closer to marginal damage. We extend previous work to simultaneously include both leakage and volatility. We study how OBA permits can be implemented under an overall cap that may change with the level of production in contrast with a design that deducts OBA permits from the overall permit allocation as is the current practice in the EU- ETS and California. We show that introducing OBA permits while keeping the overall cap fixed would only increase price fluctuations and induce severe welfare losses to non-OBA sectors.
En amont du sommet climat qui se tiendra à Paris le 12 décembre 2017, France Stratégie et la Chaire Énergie et Prospérité ont organisé une table-ronde sur la contribution que le système financier peut apporter à la transition énergétique et la stabilisation du climat. Visionnez la vidéo avec les interventions de Laurent Clerc (Banque...
Output-based allocations (OBAs) are typically used in emission trading schemes to mitigate leakage in sectors at risk. Recent work has shown they may also help to stabilize prices in markets subject to supply and demand shocks. We extend previous work to simultaneously include both leakage and volatility.
Cette 8ème séance du séminaire "Financement de la transition énergétique" explorera le marché des greens bonds ainsi que l'importance majeure du reporting.