Paper on EU ETS reform accepted in the Journal of Environmental Economics and Management

20. September 2016

A paper by Grischa Perino and Maximilian Willner has been accepted at the Journal of Environmental Economics and Management. It investigates the likely impacts of the market stability reserve to be introduced into the EU Emission Trading System (EU ETS) in 2019. The analysis points at a number of serious shortcomings of the reform. The EU's objectives of stimulating low-carbon innovations, of increasing the resilience of the EU ETS with respect to demand shocks and to promote synergies with overlapping policies such as support for renewables cannot be met all at the same time by the mechanism - if at all.

Grischa Perino and Maximilian Willner (2016) Procrastinating Reform: The Impact of the Market Stability Reserve on the EU ETS, Journal of Environmental Economics and Management, forthcoming.