Abstract
This paper critically assesses the potential for linkage of emissions trading schemes (ETS) designed to curb greenhouse gases. Based on current negotiations in order to link domestic schemes, we highlight the institutional barriers that exist due to different design options. Among these barriers, we highlight the potential negative effects on environmental integrity that arise from linking a rate-based system with an absolute system. Our results therefore suggest that increasing interests in linking ETS shall not be exempt from careful regulatory appraisal ex ante. Besides, we raise new questions by demonstrating how the linking process has an impact on agents' choices of technology and pollution levels.
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
