Abstract
The present study develops an approach explicitly to cover the waste sector under the Emissions Trading Scheme of the European Union (EU ETS). The objective is to analyze various allocation possibilities and the resulting monetary burdens for the waste sector. Three different allocation variants for allocating emission allowances and their financial burden to the waste sector are developed. These variants support implementation within the EU ETS in the third trading period from 2013 to 2020. The respective distributions of emission allowances to the Austrian waste sector are estimated for each variant calculated. Allowances vary depending on specific industry, the relative share of free and purchased allowances, and the relative costs entailed in additional purchase. Although the present paper focuses explicitly on the Austrian waste sector, in principle, the calculation procedure is applicable to waste sectors in other developed countries as well.
Highlights
As part of the Kyoto agreement in 1997, the European Union (EU) committed itself to reducing by 2012 climate effective emissions by 8 percent below the 1990 emissions level
The present study takes the economic model lying behind the emission allowance allocation and develops three allocation variants in order to reflect the different allocation possibilities available for the waste sector (it is assumed here that the waste sector will be included in the third EU ETS trading period (2013-2020))
The monetary value stated in brackets, directly below the amount of emission allowances to be obtained via auction, is based on the average price of € 14.68/t CO2 [34] for the six month period from March to August 2011
Summary
As part of the Kyoto agreement in 1997, the European Union (EU) committed itself to reducing by 2012 climate effective emissions by 8 percent below the 1990 emissions level. When using the trading of emission allowances as a climate-policy instrument, a limit or cap is set for the total amount of emissions allowed. This emissions limit can be reached by countries trading emission allowances in a cost-effective and economically efficient manner [1,2,3,4,5,6,7]. The present study takes the economic model lying behind the emission allowance allocation and develops three allocation variants in order to reflect the different allocation possibilities available for the waste sector (it is assumed here that the waste sector will be included in the third EU ETS trading period (2013-2020))
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