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Pricing Carbon: The European Union Emissions Trading Scheme

TLDR
The European Union's Emissions Trading Scheme (EU ETS) is the world's largest market for carbon and the most significant multinational initiative ever taken to mobilize markets to protect the environment as discussed by the authors.
Abstract
The European Union's Emissions Trading Scheme (EU ETS) is the world's largest market for carbon and the most significant multinational initiative ever taken to mobilize markets to protect the environment. It will be an important influence on the development and implementation of trading schemes in the US, Japan, and elsewhere. However, as is true of any pioneering public policy experiment, this scheme has generated much controversy. Pricing Carbon provides the first detailed description and analysis of the EU ETS, focusing on the first 'trial' period of the scheme (2005–7). Written by an international team of experts, it allows readers to get behind the headlines and come to a better understanding of what was done and what happened based on a dispassionate, empirically based review of the evidence. This book should be read by anyone who wants to know what happens when emissions are capped, traded, and priced.

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Citations
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Journal ArticleDOI

Carbon Footprint and the Management of Supply Chains: Insights From Simple Models

TL;DR: It is shown that firms could effectively reduce their carbon emissions without significantly increasing their costs by making only operational adjustments and by collaborating with other members of their supply chain.
Posted Content

The Effect of Maternal Education on Fertility and Infant Health: Evidence from School Entry Policies Using Exact Date of Birth

TL;DR: It is argued that school entry policies manipulate primarily the education of young women at risk of dropping out of school.
Journal ArticleDOI

Environmental Policy and Directed Technological Change: Evidence from the European carbon market

TL;DR: In this paper, the authors investigated the impact of the European Union Emissions Trading System (EU ETS) on technological change, exploiting installations-level inclusion criteria to estimate the System's causal impact on firms' patenting.
References
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Book

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TL;DR: In this paper, it is argued that the suggested courses of action are inappropriate, in that they lead to results which are not necessarily, or even usually, desirable, and therefore, it is recommended to exclude the factory from residential districts (and presumably from other areas in which the emission of smoke would have harmful effects on others).
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Competitiveness: A Dangerous Obsession

Paul Krugman
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Markets in licenses and efficient pollution control programs

TL;DR: In this paper, Arrow has demonstrated that when externalities are present in a general equilibrium system, a suitable expansion of the commodity space would lead to Pareto optimality by bringing externalities under the control of the price system.
Journal ArticleDOI

Transaction Costs and Tradeable Permits

TL;DR: In this article, the authors argue that in some cases, equilibrium permit allocations and hence aggregate control costs are sensitive to initial permit distributions, providing an efficiency justification for politicians' typical focus on initial allocations.
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