Volltext-Downloads (blau) und Frontdoor-Views (grau)

Establishing a transatlantic carbon market

  • The current emissions trading debates in the EU and the USA were examined and the prospects for creating a transatlantic carbon market were analysed. A future US Emissions Trading Scheme (US ETS) may be designed very differently from the EU ETS, raising questions of compatibility. Crucial differences relate to the stringency of targets, the recognition of offsets, and price control mechanisms. These differences flow directly from the different policy and economic perspectives on emissions trading and climate policy in the USA and the EU. The two sides should therefore seek a way forward that reconciles potentially different climate policies. For example, the USA and the EU should consider an effort to harmonize carbon prices, and USThe current emissions trading debates in the EU and the USA were examined and the prospects for creating a transatlantic carbon market were analysed. A future US Emissions Trading Scheme (US ETS) may be designed very differently from the EU ETS, raising questions of compatibility. Crucial differences relate to the stringency of targets, the recognition of offsets, and price control mechanisms. These differences flow directly from the different policy and economic perspectives on emissions trading and climate policy in the USA and the EU. The two sides should therefore seek a way forward that reconciles potentially different climate policies. For example, the USA and the EU should consider an effort to harmonize carbon prices, and US legislation could phase out cost-containment mechanisms after some time period. Finally, both US and EU policies should have mechanisms that allow periodic recalibration, which would allow each to adjust to new technology, react to developing-country climate policies, and learn from each other. In the longer term, this would allow both sides to strive for greater policy convergence, either through linked trading systems, harmonized prices, or a transition from harmonized prices to linkage.show moreshow less

Export metadata

Additional Services

Share in Twitter    Search Google Scholar    frontdoor_oas
Metadaten
Document Type:Peer-Reviewed Article
Author:Wolfgang Sterk, Joseph Kruger
Year of Publication:2009
Language:English
Source Title (English):Climate policy
DOI:https://doi.org/10.3763/cpol.2009.0623
Volume:9
Issue:4
First Page:389
Last Page:401
Division:Energie-, Verkehrs- und Klimapolitik
Dewey Decimal Classification:320 Politik