Publications of the Project: Academic support and advice for the further development of the European emissions trading system (EU ETS) in the context of the revision of the EU ETS Directive (2003/87/EC)

EU Emissions Trading: The Need for Cap Adjustment in Response to External Shocks and Unexpected Developments? Environmental Research of the German Federal Ministry of the Environment, Nature Conservation and Nuclear Safety ; Project-No. (FKZ) 3711 41 504

The effectiveness of an emissions trading system in terms of reducing greenhouse gas emissions is mainly due to the magnitude of the specified emission cap. Assuming sufficient control, a quantitative emission target defined in such a way is quasi automatically achieved by the limited allocation of emission allowances. In functioning markets, this coincides with a somewhat higher allowance price as ...