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"Combining Dynamic Allocation and Inclusion of Consumption into the EU ETS Would Be Beneficial": Six Questions to Karsten Neuhoff

Interview of July 16, 2015

Professor Neuhoff, the EU Emissions Trading System, or the EU ETS, has been in existence for ten years now. Has the scheme stood the test of time so far?

First, the EU ETS has demonstrated that Europe can act collectively and it takes climate protection seriously. Second, it has established a long-term framework for emissions reductions. Third, the price signal has helped companies consider more efficient low-carbon options. However, since 2012, the carbon price has plummeted. Now this is addressed at the European level through the market stability reserve. [...]

The interview with Karsten Neuhoff, is published in DIW Economic Bulletin 28/2015. It is available for free download (PDF, 174.95 KB).

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