Sammanfattning

Carbon prices in the EU Emissions Trading Scheme (EU ETS) have risen from around 5 euro per ton of CO2 in 2017 to above 90 euro in 2021. One probable explanation is the cancellation mechanism implemented along with the Market Stability Reserve (MSR) of the EU ETS in 2018. We identify realistic conditions under which the MSR results in truly massive cancellation of emissions allowances, pointing to the steepness of the emissions pathway over time as essential. A flattening of the emissions pathway implies huge reduction in cumulative emissions, suggesting much higher ETS prices. The concerns about too low and 'ineffective' carbon prices may turn into concerns for too high prices. The results have important ramifications for planned revisions of the EU ETS.

Nyckelord

emissions trading; EU ETS; climate policy; climate change

Publicerad i

Environmental Research Letters
2022, Volym: 17, nummer: 5, artikelnummer: 054018
Utgivare: IOP Publishing Ltd

SLU författare

• Heijmans, Roweno

  • Institutionen för ekonomi, Sveriges lantbruksuniversitet
    

Globala målen

SDG13 Vidta omedelbara åtgärder för att bekämpa klimatförändringarna och dess konsekvenser


UKÄ forskningsämne

Nationalekonomi


Publikationens identifierare

DOI: https://doi.org/10.1088/1748-9326/ac63d6

Permanent länk till denna sida (URI)

https://res.slu.se/id/publ/117050