Empirical analysis of the pilot phase of the European carbon trading system
The book provides a ... more Empirical analysis of the pilot phase of the European carbon trading system
The book provides a theoretically sound and empirically validated understanding of carbon trading in a New Member State of the EU. The research contributes to the field of environmental economics by analyzing data of companies directly subject to the EU Emissions Trading Scheme (EU ETS) and by drawing conclusions in order to improve the system for the post-Kyoto phase. This ex-post research is the first attempt to qualitatively and quantitatively estimate the effects of emissions trading on a new market economy based on actual market data. The study provides insights into how political, economic and climate policy contexts shape responses to the EU ETS.
The main aim of the analysis is to provide evidence on the labour market and economic impacts of ... more The main aim of the analysis is to provide evidence on the labour market and economic impacts of different decarbonisation pathways for the basic metals, chemicals and minerals sector, as a part of EII, and for the wider economy, considering also the expected effects of a carbon border adjustment mechanism (CBAM).
The E3ME macroeconometric model maintained by Cambridge Econometrics was used to simulate the direct and indirect effects of transition in this sector as well as to give insights into the induced effects such as: the impact on the economy of supply chain effects and changing energy demand from EII sectors; the spillover effects in other sectors from potential lay-offs or sectoral transformation; and the socioeconomic impacts that arise from changing Emissions Trading System (ETS) revenues.
Three scenarios were designed, representing alternative decarbonisation pathways for each industry based on different assumptions; namely, the type and share of technologies adopted and the time profile and costs of emissions abatement. The study also analysed the proposed CBAM and its effects in interaction with the different decarbonisation pathways.
This paper summarises the EU27 results from the E3ME modelling exercise which analyses the impacts of the sectoral decarbonisation scenarios for energy intensive industries. These scenarios are defined on top of a reference scenario that is already aiming to reach economy-wide net zero emissions by 2050, therefore limiting global warming to 1.5C by the end of the century. The sectoral pathways aim to contribute to this by eliminating emissions from EII by 2050.
After a brief overview of the scenarios under the E3ME model, a discussion of the results follows. This focuses on employment at EU27 level as well as on the differences between the Member States.
Annex IV Methodology and Models Used 1 IV.1 Methodology 1 IV.1.1 Policy assumptions and sensitivi... more Annex IV Methodology and Models Used 1 IV.1 Methodology 1 IV.1.1 Policy assumptions and sensitivity analysis 1 IV.1.2 Mapping of status quo and counterfactuals 2 IV.1.3 Establishing a baseline scenario for international shipping and aviation 2 IV.2 Models used 5 IV.2.1 E3MG 5 IV.2.2 Marginal Abatement Cost Curve Model 6 IV.2.3 Ship Emission Projection and Freight Cost model 7 IV.2.4 AERO 7 IV.3 Ad Hoc modelling 8 References 14
Vezetéstudomány / Budapest Management Review, 2010
Jelen cikk az Európai Unió szén-dioxid-kibocsátás-kereskedelmi rendszere (European Union Emission... more Jelen cikk az Európai Unió szén-dioxid-kibocsátás-kereskedelmi rendszere (European Union Emissions Trading Scheme – EU ETS) próbaidőszakának magyarországi tapasztalatait mutatja be.1 Bevezetőként áttekinti a rendszer működését, majd a sokakat foglalkoztató kérdést elemzi, miszerint a rendszer kizárólag adminisztratív terhet jelent-e a hatálya alá tartozó vállalatoknak, vagy profitlehetőséget tartogat számukra. A cikk vizsgálja, hogy az EU ETS milyen hatást gyakorolt a részt vevő vállalatokra: ösztönzött-e innovációt, befolyásolta-e a szektorok versenyképességét, volt-e hatással a költségekre, s hogy hordozott-e változást a cégek operatív és befektetési döntéseiben. A cikk megállapítja, hogy a kibocsátáskereskedelem a feladatokon túl komoly üzleti lehetőséget jelent az EU-s rendszerben érintett vállalatok számára. A kibocsátási egységek megfontolt, a vállalati beruházáspolitikával összehangolt felhasználásával jelentős bevétel teremthető a kibocsátás-csökkentésből. A rendszer próbaid...
Vezetéstudomány / Budapest Management Review, 2009
Jelen cikk az Európai Unió szén-dioxid-kibocsátás kereskedelmi rendszerének próbaidőszakában leza... more Jelen cikk az Európai Unió szén-dioxid-kibocsátás kereskedelmi rendszerének próbaidőszakában lezajlott aukciókat elemzi. Ezek lebonyolításának vizsgálata és a tapasztalatok megismerése különösen fontos, nemcsak a kiotói időszakra való felkészüléshez, hanem a 2013 utáni nagyarányú árverések lebonyolításának kialakításához is. A próbaidőszakban négy tagállam tett félre kibocsátási egységeket nemzeti kiosztási tervében, hogy azokat térítés fejében ossza ki. Három ország – Írország, Magyarország és Litvánia – borítékolt, egyenáras árverést rendezett. A dán kormány pedig közvetlenül a piacon értékesítette egységeit. Az árverések sikeresen lezajlottak, azonban egyik tagállam sem tudott igazán profitálni a rendszerből a szén-dioxid-egységek árának mélyrepülése miatt.
A szerzők cikkükben az Európai Unióban 2005. január 1-je óta működő emissziókereskedelmi rendszer... more A szerzők cikkükben az Európai Unióban 2005. január 1-je óta működő emissziókereskedelmi rendszerben elszámolható szennyezéskibocsátási jogosultságok számviteli kezelését mutatják be a hatályos magyar szabályozás alapján. Az üvegházhatású gázok kibocsátásának visszaszorítása és kiszámíthatóvá tétele nagy kihívást jelent napjainkban. A kötelezettségvállalások végső címzettjei, az üzemeltetők számra a kibocsátási egységek vagyoni értékű jogként jelennek meg a számviteli beszámolókban. Írásuk első részében bemutatják az emissziókereskedelmi rendszer bevezetését, s 2007 végéig tartó próbaidőszakának működését. A cikk második fele a kibocsátási kvóta kereskedelmének számvitelét elemzi, majd a kvóták megjelenésének eredményre gyakorolt hatását vizsgálja. A szerzők végezetül pedig kitekintést adnak a 2008-ban kezdődő második periódusra, s a lehetséges változásokra.
The Nexus concept is the interconnection between the resources energy, water, food, land and clim... more The Nexus concept is the interconnection between the resources energy, water, food, land and climate. Such interconnections enable to address trade-offs and seek for synergies among them. Several policy areas (e.g. bio-based economy, circular economy) increasingly consider the Nexus concept. Ignoring synergies and trade-offs between energy and natural flows, can generate misleading modelling outcomes. Several modelling tools are available to address energy and the Nexus. Based on six such models, this paper aims to support the design and testing of coherent strategies for sustainable development. Model improvements would be achieved by comparing model outcomes and including a common baseline.
The Working Paper series of the UniCredit & Universities Foundation is designed to dissem... more The Working Paper series of the UniCredit & Universities Foundation is designed to disseminate and to provide a platform for discussion of either work of UniCredit economists and researchers or outside contributors (such as the UniCredit & Universities scholars and fellows) on topics which are of special interest to UniCredit. To ensure the high quality of their content, the contributions are subjected to an international refereeing process conducted by the Scientific Committee members of the Foundation. The opinions are strictly those of the authors and do in no way commit the Foundation and UniCredit Group.
The article discusses how and why Green Recovery could be beneficial for the Visegrad countries b... more The article discusses how and why Green Recovery could be beneficial for the Visegrad countries based on a modelling exercise using the E3ME macroeconometric model. Green Recovery is defined as including policies in recovery plans that not only target economic recovery, but also contribute to environmental targets. The paper proposes that a Green Recovery could be valuable and suitable for the region contributing to both restoring employment and boosting economic activity as well as reaching climate goals. This is tested through a macroeconomic simulation, using the E3ME model. E3ME is built on Post-Keynesian economic theory and on econometric estimations of macroeconomic relationships. The results of the analysis focus on three dimensions: (1) social – employment, (2) environmental – level of CO2 emissions and (3) economic activity – gross domestic product (GDP). Outcomes indicate that a green recovery can shorten the time needed for employment and economic recovery as well as cont...
Climate Strategies aims to assist government in solving the collective action problem of climate ... more Climate Strategies aims to assist government in solving the collective action problem of climate change. A -not for profit‖ membership organisation, Companies House Number 05796323. Funders include governments and foundations.
Approaches to redistribute the costs of climate policy (effort sharing) have been central to EU c... more Approaches to redistribute the costs of climate policy (effort sharing) have been central to EU climate change policy since its inception in the early 1990s. This is both due to the nature of the problem, which inherently involves (re-)distributing costs between sectors, jurisdictions and generations, and the nature of the EU. This paper surveys the effort sharing approaches taken over the course of EU climate policy, since its early efforts to agree to the distribution of a common EU Kyoto target among member countries to the 2008 Climate and Energy Package. In so doing, the paper aims to draw lessons learned for other jurisdictions and the EU itself as they develop and implement climate change policies. The paper comes to several central conclusions: Firstly, climate policy negotiation in the EU takes place within an enormously complex web of other policies and interests, allowing space for (implicit) bargaining that is unlikely to exist in other international settings. Secondly, ...
Http Dx Doi Org 10 1080 14693062 2013 745111, Jan 31, 2013
The distributional choices of the EU in three policy phases, spanning 20 years, are examined: the... more The distributional choices of the EU in three policy phases, spanning 20 years, are examined: the negotiations on emissions reduction targets for the EU15 under the first commitment period of the Kyoto Protocol, the negotiation of National Allocation Plans for Phase II of the EU Emissions Trading Scheme (ETS) between 2008 and 2012, and the formulation of the 2008 Climate and Energy Package for the period 2013–2020. A flexible and pragmatic framework, consisting of the normative principles of capacity, responsibility, equality, and need, is used to elucidate the indicators and policies used in deciding how the EU Member States are to share the cost of meeting climate policy objectives. The analysis extends the literature by applying a common analytical framework across the three different policy phases and provides a structured basis for the assessment of what the EU and other jurisdictions can learn from them.
Http Dx Doi Org 10 1080 14693062 2013 745111, Jan 31, 2013
The distributional choices of the EU in three policy phases, spanning 20 years, are examined: the... more The distributional choices of the EU in three policy phases, spanning 20 years, are examined: the negotiations on emissions reduction targets for the EU15 under the first commitment period of the Kyoto Protocol, the negotiation of National Allocation Plans for Phase II of the EU Emissions Trading Scheme (ETS) between 2008 and 2012, and the formulation of the 2008 Climate and Energy Package for the period 2013–2020. A flexible and pragmatic framework, consisting of the normative principles of capacity, responsibility, equality, and need, is used to elucidate the indicators and policies used in deciding how the EU Member States are to share the cost of meeting climate policy objectives. The analysis extends the literature by applying a common analytical framework across the three different policy phases and provides a structured basis for the assessment of what the EU and other jurisdictions can learn from them.
The Nexus concept is the interconnection between the resources energy, water, food, land and clim... more The Nexus concept is the interconnection between the resources energy, water, food, land and climate. Such interconnections enable to address trade-offs and seek for synergies among them. Several policy areas (e.g. bio-based economy, circular economy) increasingly consider the Nexus concept. Ignoring synergies and trade-offs between energy and natural flows, can generate misleading modelling outcomes. Several modelling tools are available to address energy and the Nexus. Based on six such models, this paper aims to support the design and testing of coherent strategies for sustainable development. Model improvements would be achieved by comparing model outcomes and including a common baseline.
This study is the first and –so far– only attempt to comprehensively assess and synthesise inform... more This study is the first and –so far– only attempt to comprehensively assess and synthesise information about the Kyoto governmental emission rights (Assigned Amount Units, AAUs) trade over the entire Kyoto period 2008-2012, to give an overview of concluded AAU deals and prices, to discuss underlying greening activities (Green Investment Schemes, GIS) implemented in Central and Eastern-European (CEE) countries, and to analyse buyer and seller country strategies.
"International shipping and aviation account for approximately 5% of annual anthropogenic CO2 emi... more "International shipping and aviation account for approximately 5% of annual anthropogenic CO2 emissions and this is projected to increase in the coming decades. To address these emissions, market-based measures (MBMs) have been proposed to the International Maritime Organization (IMO) and the International Civil Aviation Organization (ICAO) by some of their Member States.
As MBMs raise the costs of aviation and maritime transport, they impact economies due to increased prices for passenger travel and exported and imported goods. The main objectives of the study were to:
(i) Assess the economic impacts of a number of MBMs on selected case study countries and globally; and
(ii) Determine the possible, and most effective and efficient tools to address or reduce these impacts, where they are deemed undesirable.
The study focuses on a selection of case study countries which, based on their economic structure, were anticipated to be negatively impacted by MBMs for international shipping and aviation."
The distributional choices of the EU in three policy phases, spanning 20 years, are examined: the... more The distributional choices of the EU in three policy phases, spanning 20 years, are examined: the negotiations on emissions reduction targets for the EU15 under the first commitment period of the Kyoto Protocol, the negotiation of National Allocation Plans for Phase II of the EU Emissions Trading Scheme (ETS) between 2008 and 2012, and the formulation of the 2008 Climate and Energy Package for the period 2013–2020. A flexible and pragmatic framework, consisting of the normative principles of capacity, responsibility, equality, and need, is used to elucidate the indicators and policies used in deciding how the EU Member States are to share the cost of meeting climate policy objectives. The analysis extends the literature by applying a common analytical framework across the three different policy phases and provides a structured basis for the assessment of what the EU and other jurisdictions can learn from them.
Approaches to redistribute the costs of climate policy (effort sharing) have been central to Euro... more Approaches to redistribute the costs of climate policy (effort sharing) have been central to European Union (EU) climate change policy since its inception in the early 1990s. This is both due to the nature of the problem, which inherently involves (re)distributing costs between sectors, jurisdictions and generations, and the nature of the EU. This paper seeks to survey the effort sharing approaches taken over the course of EU climate policy, since its early efforts to agree to the distribution of a common EU Kyoto target among Member States to the 2008 Climate and Energy Package. In so doing, the paper aims to draw lessons learned for other jurisdictions and the EU itself as they develop and implement climate change policies. The paper comes to several central conclusions. Firstly, climate policy negotiation in the EU takes place within an enormously complex web of other policies and interests, allowing space for (implicit) bargaining that is unlikely to exist in other international settings. Secondly, a central difficulty over the history of EU effort sharing has been the harmonization of climate policy across multiple, overlapping climate regimes, including the Kyoto Protocol; the Burden Sharing Agreement between the EU15; and the European ETS. This overlap led to linkages and disharmonies that proved difficult to reconcile. Thirdly, the EU’s climate policy has moved gradually towards more centralized modes of governance; this has facilitated the harmonization and effectiveness of ambitious climate policies, but at the cost of derogations, which have potentially weakened harmonized instruments such as the ETS. Overall, the balance appears positive, however, as EU effort sharing approaches have allowed Member States to go further than they would in a purely domestic context. Ultimately, the EU’s effort sharing policies need to be seen in the difficult context of shared competences between the EU and Member States in the energy sector, and conflicting EU principles of the internal market and solidarity, which implies a differentiated approach to fundamental economic reform.
Empirical analysis of the pilot phase of the European carbon trading system
The book provides a ... more Empirical analysis of the pilot phase of the European carbon trading system
The book provides a theoretically sound and empirically validated understanding of carbon trading in a New Member State of the EU. The research contributes to the field of environmental economics by analyzing data of companies directly subject to the EU Emissions Trading Scheme (EU ETS) and by drawing conclusions in order to improve the system for the post-Kyoto phase. This ex-post research is the first attempt to qualitatively and quantitatively estimate the effects of emissions trading on a new market economy based on actual market data. The study provides insights into how political, economic and climate policy contexts shape responses to the EU ETS.
The main aim of the analysis is to provide evidence on the labour market and economic impacts of ... more The main aim of the analysis is to provide evidence on the labour market and economic impacts of different decarbonisation pathways for the basic metals, chemicals and minerals sector, as a part of EII, and for the wider economy, considering also the expected effects of a carbon border adjustment mechanism (CBAM).
The E3ME macroeconometric model maintained by Cambridge Econometrics was used to simulate the direct and indirect effects of transition in this sector as well as to give insights into the induced effects such as: the impact on the economy of supply chain effects and changing energy demand from EII sectors; the spillover effects in other sectors from potential lay-offs or sectoral transformation; and the socioeconomic impacts that arise from changing Emissions Trading System (ETS) revenues.
Three scenarios were designed, representing alternative decarbonisation pathways for each industry based on different assumptions; namely, the type and share of technologies adopted and the time profile and costs of emissions abatement. The study also analysed the proposed CBAM and its effects in interaction with the different decarbonisation pathways.
This paper summarises the EU27 results from the E3ME modelling exercise which analyses the impacts of the sectoral decarbonisation scenarios for energy intensive industries. These scenarios are defined on top of a reference scenario that is already aiming to reach economy-wide net zero emissions by 2050, therefore limiting global warming to 1.5C by the end of the century. The sectoral pathways aim to contribute to this by eliminating emissions from EII by 2050.
After a brief overview of the scenarios under the E3ME model, a discussion of the results follows. This focuses on employment at EU27 level as well as on the differences between the Member States.
Annex IV Methodology and Models Used 1 IV.1 Methodology 1 IV.1.1 Policy assumptions and sensitivi... more Annex IV Methodology and Models Used 1 IV.1 Methodology 1 IV.1.1 Policy assumptions and sensitivity analysis 1 IV.1.2 Mapping of status quo and counterfactuals 2 IV.1.3 Establishing a baseline scenario for international shipping and aviation 2 IV.2 Models used 5 IV.2.1 E3MG 5 IV.2.2 Marginal Abatement Cost Curve Model 6 IV.2.3 Ship Emission Projection and Freight Cost model 7 IV.2.4 AERO 7 IV.3 Ad Hoc modelling 8 References 14
Vezetéstudomány / Budapest Management Review, 2010
Jelen cikk az Európai Unió szén-dioxid-kibocsátás-kereskedelmi rendszere (European Union Emission... more Jelen cikk az Európai Unió szén-dioxid-kibocsátás-kereskedelmi rendszere (European Union Emissions Trading Scheme – EU ETS) próbaidőszakának magyarországi tapasztalatait mutatja be.1 Bevezetőként áttekinti a rendszer működését, majd a sokakat foglalkoztató kérdést elemzi, miszerint a rendszer kizárólag adminisztratív terhet jelent-e a hatálya alá tartozó vállalatoknak, vagy profitlehetőséget tartogat számukra. A cikk vizsgálja, hogy az EU ETS milyen hatást gyakorolt a részt vevő vállalatokra: ösztönzött-e innovációt, befolyásolta-e a szektorok versenyképességét, volt-e hatással a költségekre, s hogy hordozott-e változást a cégek operatív és befektetési döntéseiben. A cikk megállapítja, hogy a kibocsátáskereskedelem a feladatokon túl komoly üzleti lehetőséget jelent az EU-s rendszerben érintett vállalatok számára. A kibocsátási egységek megfontolt, a vállalati beruházáspolitikával összehangolt felhasználásával jelentős bevétel teremthető a kibocsátás-csökkentésből. A rendszer próbaid...
Vezetéstudomány / Budapest Management Review, 2009
Jelen cikk az Európai Unió szén-dioxid-kibocsátás kereskedelmi rendszerének próbaidőszakában leza... more Jelen cikk az Európai Unió szén-dioxid-kibocsátás kereskedelmi rendszerének próbaidőszakában lezajlott aukciókat elemzi. Ezek lebonyolításának vizsgálata és a tapasztalatok megismerése különösen fontos, nemcsak a kiotói időszakra való felkészüléshez, hanem a 2013 utáni nagyarányú árverések lebonyolításának kialakításához is. A próbaidőszakban négy tagállam tett félre kibocsátási egységeket nemzeti kiosztási tervében, hogy azokat térítés fejében ossza ki. Három ország – Írország, Magyarország és Litvánia – borítékolt, egyenáras árverést rendezett. A dán kormány pedig közvetlenül a piacon értékesítette egységeit. Az árverések sikeresen lezajlottak, azonban egyik tagállam sem tudott igazán profitálni a rendszerből a szén-dioxid-egységek árának mélyrepülése miatt.
A szerzők cikkükben az Európai Unióban 2005. január 1-je óta működő emissziókereskedelmi rendszer... more A szerzők cikkükben az Európai Unióban 2005. január 1-je óta működő emissziókereskedelmi rendszerben elszámolható szennyezéskibocsátási jogosultságok számviteli kezelését mutatják be a hatályos magyar szabályozás alapján. Az üvegházhatású gázok kibocsátásának visszaszorítása és kiszámíthatóvá tétele nagy kihívást jelent napjainkban. A kötelezettségvállalások végső címzettjei, az üzemeltetők számra a kibocsátási egységek vagyoni értékű jogként jelennek meg a számviteli beszámolókban. Írásuk első részében bemutatják az emissziókereskedelmi rendszer bevezetését, s 2007 végéig tartó próbaidőszakának működését. A cikk második fele a kibocsátási kvóta kereskedelmének számvitelét elemzi, majd a kvóták megjelenésének eredményre gyakorolt hatását vizsgálja. A szerzők végezetül pedig kitekintést adnak a 2008-ban kezdődő második periódusra, s a lehetséges változásokra.
The Nexus concept is the interconnection between the resources energy, water, food, land and clim... more The Nexus concept is the interconnection between the resources energy, water, food, land and climate. Such interconnections enable to address trade-offs and seek for synergies among them. Several policy areas (e.g. bio-based economy, circular economy) increasingly consider the Nexus concept. Ignoring synergies and trade-offs between energy and natural flows, can generate misleading modelling outcomes. Several modelling tools are available to address energy and the Nexus. Based on six such models, this paper aims to support the design and testing of coherent strategies for sustainable development. Model improvements would be achieved by comparing model outcomes and including a common baseline.
The Working Paper series of the UniCredit & Universities Foundation is designed to dissem... more The Working Paper series of the UniCredit & Universities Foundation is designed to disseminate and to provide a platform for discussion of either work of UniCredit economists and researchers or outside contributors (such as the UniCredit & Universities scholars and fellows) on topics which are of special interest to UniCredit. To ensure the high quality of their content, the contributions are subjected to an international refereeing process conducted by the Scientific Committee members of the Foundation. The opinions are strictly those of the authors and do in no way commit the Foundation and UniCredit Group.
The article discusses how and why Green Recovery could be beneficial for the Visegrad countries b... more The article discusses how and why Green Recovery could be beneficial for the Visegrad countries based on a modelling exercise using the E3ME macroeconometric model. Green Recovery is defined as including policies in recovery plans that not only target economic recovery, but also contribute to environmental targets. The paper proposes that a Green Recovery could be valuable and suitable for the region contributing to both restoring employment and boosting economic activity as well as reaching climate goals. This is tested through a macroeconomic simulation, using the E3ME model. E3ME is built on Post-Keynesian economic theory and on econometric estimations of macroeconomic relationships. The results of the analysis focus on three dimensions: (1) social – employment, (2) environmental – level of CO2 emissions and (3) economic activity – gross domestic product (GDP). Outcomes indicate that a green recovery can shorten the time needed for employment and economic recovery as well as cont...
Climate Strategies aims to assist government in solving the collective action problem of climate ... more Climate Strategies aims to assist government in solving the collective action problem of climate change. A -not for profit‖ membership organisation, Companies House Number 05796323. Funders include governments and foundations.
Approaches to redistribute the costs of climate policy (effort sharing) have been central to EU c... more Approaches to redistribute the costs of climate policy (effort sharing) have been central to EU climate change policy since its inception in the early 1990s. This is both due to the nature of the problem, which inherently involves (re-)distributing costs between sectors, jurisdictions and generations, and the nature of the EU. This paper surveys the effort sharing approaches taken over the course of EU climate policy, since its early efforts to agree to the distribution of a common EU Kyoto target among member countries to the 2008 Climate and Energy Package. In so doing, the paper aims to draw lessons learned for other jurisdictions and the EU itself as they develop and implement climate change policies. The paper comes to several central conclusions: Firstly, climate policy negotiation in the EU takes place within an enormously complex web of other policies and interests, allowing space for (implicit) bargaining that is unlikely to exist in other international settings. Secondly, ...
Http Dx Doi Org 10 1080 14693062 2013 745111, Jan 31, 2013
The distributional choices of the EU in three policy phases, spanning 20 years, are examined: the... more The distributional choices of the EU in three policy phases, spanning 20 years, are examined: the negotiations on emissions reduction targets for the EU15 under the first commitment period of the Kyoto Protocol, the negotiation of National Allocation Plans for Phase II of the EU Emissions Trading Scheme (ETS) between 2008 and 2012, and the formulation of the 2008 Climate and Energy Package for the period 2013–2020. A flexible and pragmatic framework, consisting of the normative principles of capacity, responsibility, equality, and need, is used to elucidate the indicators and policies used in deciding how the EU Member States are to share the cost of meeting climate policy objectives. The analysis extends the literature by applying a common analytical framework across the three different policy phases and provides a structured basis for the assessment of what the EU and other jurisdictions can learn from them.
Http Dx Doi Org 10 1080 14693062 2013 745111, Jan 31, 2013
The distributional choices of the EU in three policy phases, spanning 20 years, are examined: the... more The distributional choices of the EU in three policy phases, spanning 20 years, are examined: the negotiations on emissions reduction targets for the EU15 under the first commitment period of the Kyoto Protocol, the negotiation of National Allocation Plans for Phase II of the EU Emissions Trading Scheme (ETS) between 2008 and 2012, and the formulation of the 2008 Climate and Energy Package for the period 2013–2020. A flexible and pragmatic framework, consisting of the normative principles of capacity, responsibility, equality, and need, is used to elucidate the indicators and policies used in deciding how the EU Member States are to share the cost of meeting climate policy objectives. The analysis extends the literature by applying a common analytical framework across the three different policy phases and provides a structured basis for the assessment of what the EU and other jurisdictions can learn from them.
The Nexus concept is the interconnection between the resources energy, water, food, land and clim... more The Nexus concept is the interconnection between the resources energy, water, food, land and climate. Such interconnections enable to address trade-offs and seek for synergies among them. Several policy areas (e.g. bio-based economy, circular economy) increasingly consider the Nexus concept. Ignoring synergies and trade-offs between energy and natural flows, can generate misleading modelling outcomes. Several modelling tools are available to address energy and the Nexus. Based on six such models, this paper aims to support the design and testing of coherent strategies for sustainable development. Model improvements would be achieved by comparing model outcomes and including a common baseline.
This study is the first and –so far– only attempt to comprehensively assess and synthesise inform... more This study is the first and –so far– only attempt to comprehensively assess and synthesise information about the Kyoto governmental emission rights (Assigned Amount Units, AAUs) trade over the entire Kyoto period 2008-2012, to give an overview of concluded AAU deals and prices, to discuss underlying greening activities (Green Investment Schemes, GIS) implemented in Central and Eastern-European (CEE) countries, and to analyse buyer and seller country strategies.
"International shipping and aviation account for approximately 5% of annual anthropogenic CO2 emi... more "International shipping and aviation account for approximately 5% of annual anthropogenic CO2 emissions and this is projected to increase in the coming decades. To address these emissions, market-based measures (MBMs) have been proposed to the International Maritime Organization (IMO) and the International Civil Aviation Organization (ICAO) by some of their Member States.
As MBMs raise the costs of aviation and maritime transport, they impact economies due to increased prices for passenger travel and exported and imported goods. The main objectives of the study were to:
(i) Assess the economic impacts of a number of MBMs on selected case study countries and globally; and
(ii) Determine the possible, and most effective and efficient tools to address or reduce these impacts, where they are deemed undesirable.
The study focuses on a selection of case study countries which, based on their economic structure, were anticipated to be negatively impacted by MBMs for international shipping and aviation."
The distributional choices of the EU in three policy phases, spanning 20 years, are examined: the... more The distributional choices of the EU in three policy phases, spanning 20 years, are examined: the negotiations on emissions reduction targets for the EU15 under the first commitment period of the Kyoto Protocol, the negotiation of National Allocation Plans for Phase II of the EU Emissions Trading Scheme (ETS) between 2008 and 2012, and the formulation of the 2008 Climate and Energy Package for the period 2013–2020. A flexible and pragmatic framework, consisting of the normative principles of capacity, responsibility, equality, and need, is used to elucidate the indicators and policies used in deciding how the EU Member States are to share the cost of meeting climate policy objectives. The analysis extends the literature by applying a common analytical framework across the three different policy phases and provides a structured basis for the assessment of what the EU and other jurisdictions can learn from them.
Approaches to redistribute the costs of climate policy (effort sharing) have been central to Euro... more Approaches to redistribute the costs of climate policy (effort sharing) have been central to European Union (EU) climate change policy since its inception in the early 1990s. This is both due to the nature of the problem, which inherently involves (re)distributing costs between sectors, jurisdictions and generations, and the nature of the EU. This paper seeks to survey the effort sharing approaches taken over the course of EU climate policy, since its early efforts to agree to the distribution of a common EU Kyoto target among Member States to the 2008 Climate and Energy Package. In so doing, the paper aims to draw lessons learned for other jurisdictions and the EU itself as they develop and implement climate change policies. The paper comes to several central conclusions. Firstly, climate policy negotiation in the EU takes place within an enormously complex web of other policies and interests, allowing space for (implicit) bargaining that is unlikely to exist in other international settings. Secondly, a central difficulty over the history of EU effort sharing has been the harmonization of climate policy across multiple, overlapping climate regimes, including the Kyoto Protocol; the Burden Sharing Agreement between the EU15; and the European ETS. This overlap led to linkages and disharmonies that proved difficult to reconcile. Thirdly, the EU’s climate policy has moved gradually towards more centralized modes of governance; this has facilitated the harmonization and effectiveness of ambitious climate policies, but at the cost of derogations, which have potentially weakened harmonized instruments such as the ETS. Overall, the balance appears positive, however, as EU effort sharing approaches have allowed Member States to go further than they would in a purely domestic context. Ultimately, the EU’s effort sharing policies need to be seen in the difficult context of shared competences between the EU and Member States in the energy sector, and conflicting EU principles of the internal market and solidarity, which implies a differentiated approach to fundamental economic reform.
This report examines the experience of the European Union’s Emission Trading System to date and s... more This report examines the experience of the European Union’s Emission Trading System to date and suggests key lessons relevant to current debates in those countries considering implementing similar schemes, with associated recommendations, with reference to carbon pricing in Australia.
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Books by Dora Fazekas
The book provides a theoretically sound and empirically validated understanding of carbon trading in a New Member State of the EU. The research contributes to the field of environmental economics by analyzing data of companies directly subject to the EU Emissions Trading Scheme (EU ETS) and by drawing conclusions in order to improve the system for the post-Kyoto phase. This ex-post research is the first attempt to qualitatively and quantitatively estimate the effects of emissions trading on a new market economy based on actual market data. The study provides insights into how political, economic and climate policy contexts shape responses to the EU ETS.
Papers by Dora Fazekas
The E3ME macroeconometric model maintained by Cambridge Econometrics was used to simulate the direct and indirect effects of transition in this sector as well as to give insights into the induced effects such as: the impact on the economy of supply chain effects and changing energy demand from EII sectors; the spillover effects in other sectors from potential lay-offs or sectoral transformation; and the socioeconomic impacts that arise from changing Emissions Trading System (ETS) revenues.
Three scenarios were designed, representing alternative decarbonisation pathways for each industry based on different assumptions; namely, the type and share of technologies adopted and the time profile and costs of emissions abatement. The study also analysed the proposed CBAM and its effects in interaction with the different decarbonisation pathways.
This paper summarises the EU27 results from the E3ME modelling exercise which analyses the impacts of the sectoral decarbonisation scenarios for energy intensive industries. These scenarios are defined on top of a reference scenario that is already aiming to reach economy-wide net zero emissions by 2050, therefore limiting global warming to 1.5C by the end of the century. The sectoral pathways aim to contribute to this by eliminating emissions from EII by 2050.
After a brief overview of the scenarios under the E3ME model, a discussion of the results follows. This focuses on employment at EU27 level as well as on the differences between the Member States.
As MBMs raise the costs of aviation and maritime transport, they impact economies due to increased prices for passenger travel and exported and imported goods. The main objectives of the study were to:
(i) Assess the economic impacts of a number of MBMs on selected case study countries and globally; and
(ii) Determine the possible, and most effective and efficient tools to address or reduce these impacts, where they are deemed undesirable.
The study focuses on a selection of case study countries which, based on their economic structure, were anticipated to be negatively impacted by MBMs for international shipping and aviation."
The book provides a theoretically sound and empirically validated understanding of carbon trading in a New Member State of the EU. The research contributes to the field of environmental economics by analyzing data of companies directly subject to the EU Emissions Trading Scheme (EU ETS) and by drawing conclusions in order to improve the system for the post-Kyoto phase. This ex-post research is the first attempt to qualitatively and quantitatively estimate the effects of emissions trading on a new market economy based on actual market data. The study provides insights into how political, economic and climate policy contexts shape responses to the EU ETS.
The E3ME macroeconometric model maintained by Cambridge Econometrics was used to simulate the direct and indirect effects of transition in this sector as well as to give insights into the induced effects such as: the impact on the economy of supply chain effects and changing energy demand from EII sectors; the spillover effects in other sectors from potential lay-offs or sectoral transformation; and the socioeconomic impacts that arise from changing Emissions Trading System (ETS) revenues.
Three scenarios were designed, representing alternative decarbonisation pathways for each industry based on different assumptions; namely, the type and share of technologies adopted and the time profile and costs of emissions abatement. The study also analysed the proposed CBAM and its effects in interaction with the different decarbonisation pathways.
This paper summarises the EU27 results from the E3ME modelling exercise which analyses the impacts of the sectoral decarbonisation scenarios for energy intensive industries. These scenarios are defined on top of a reference scenario that is already aiming to reach economy-wide net zero emissions by 2050, therefore limiting global warming to 1.5C by the end of the century. The sectoral pathways aim to contribute to this by eliminating emissions from EII by 2050.
After a brief overview of the scenarios under the E3ME model, a discussion of the results follows. This focuses on employment at EU27 level as well as on the differences between the Member States.
As MBMs raise the costs of aviation and maritime transport, they impact economies due to increased prices for passenger travel and exported and imported goods. The main objectives of the study were to:
(i) Assess the economic impacts of a number of MBMs on selected case study countries and globally; and
(ii) Determine the possible, and most effective and efficient tools to address or reduce these impacts, where they are deemed undesirable.
The study focuses on a selection of case study countries which, based on their economic structure, were anticipated to be negatively impacted by MBMs for international shipping and aviation."