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Project: International Climate Policy

European Emissions Trading System evaluation

 

In this project, we evaluate the European Emissions Trading System. Using data from the European Union Transaction Log (EUTL), we identified market players in the European Emissions Trading System to examine their trading activity. First, as we were only able to identify a small amount of trading involvement by regulated companies, the transaction costs of trading were analyzed in detail. Second, since we observed active trade participation by players from the financial sector, a special investigation was conducted into the role of banks and stock exchanges in emissions trading. In addition to descriptive analyzes, we employed other methods such as cluster analyzes and regressions.

Duration: 2013 - noch nicht abgeschlossen

Financing: SCCER CREST, DIW und CEEM, UNSW Australia

Project Team:

  • Regina Betz (CEE, ZHAW/CEEM, UNSW Australia) (Kontakt: betz@zhaw.ch)
  • Johanna Cludius (CEE, ZHAW)
  • Thomas Leu (CEE, ZHAW)

External Project Partners:

  • Tobias Schmidt (ETH Zürich), Karsten Neuhoff (Deutsches Institut für Wirtschaftsforschung, DIW) und andere Climate Strategies

Publications:

  • Betz, R. / Schmidt, T. S., 2016, Transfer patterns in Phase I of the EU Emissions Trading System: a first reality check based on cluster analysis, Climate Policy, 16:4, pp. 474-495; DOI: 10.1080/14693062.2015.1028319.
  • Betz R. 2015, Emissions Trading in Practice: Lessons learnt from the European emissions trading scheme, in Handbook of Environmental Economics in Asia, Shunsuke Managi (Ed.), Routledge, pp. 182-206.
  • Betz R. / Cludius J. / Leu T., 2015: Trading costs in the first phase of the EU ETS: Estimation and explanations - Evidence from CITL data, EPAG/CREST Working Paper.
  • K. Neuhoff, W. Acworth, R. Betz, D. Burtraw, J. Cludius, H. Fell, C. Hepburn, C. Holt, F. Jotzo, S. Kollenberg, F. Landis, S. Salant, A. Schopp, W. Shobe, L. Taschini and R. Trotignon, 2015: Is a Market Stability Reserve likely to improve the functioning of the EU ETS? Evidence from a model comparison exercise, Climate Strategy Report.

Events:

  • FWP/ÖBU/Green Budget conference 2013

Presentations:

  • Betz, R., The Role of the Financial Sector in EU Emissions Trading, presented at the International Association of Energy Economics (IAEE) international conference, May 2015, Antalya, Turkey.
  • Leu, T., The Impact of Transaction Costs on the Efficiency of the EU ETS - An empirical analysis with CITL data, presented at the University of Neuchatel, June 2015, Switzerland.
  • Betz, R., Trading Costs and the Efficiency of Emissions Trading – Evidence from the EU ETS, presented at 4th IAEE Asia Conference 2014, Beijing, China.
  • Betz, R., Allowance transfers in Phase I of the EU Emissions Trading Scheme: A first reality check of transfer patterns based on cluster analysis, presented at World Congress of Environmental and Resource Economists (WCERE), June/July 2014, Istanbul, Turkey.
  • Betz, R., From Challenges to Opportunities: Past, Present, Future, presented at ZHAW/ÖBU/Green Budget conference, October 2013, Winterthur.