Öko-Institut report: "The environmental effectiveness and economic efficiency of the EU ETS [...]"
The European Emission Trading Scheme (EU ETS) is a crucial cornerstone of climate change policy in Europe and the first international trading system for carbon dioxide (CO2) emissions in the world. The Öko-Institut report "The environmental effectiveness and economic efficiency of the EU ETS: Structural aspects of the allocation"
evaluates the way these allowances have been distributed to individual installations. The question of allowance distribution heavily affects the incentives for investing in cleaner, less carbon-intense technologies and the economic efficiency of the scheme.