Policy credibility is a key component for an effective and efficient EU Emissions Trading System
Author:
Funder
EC | Horizon 2020 Framework Programme
Bundesministerium für Bildung und Forschung
Publisher
Springer Science and Business Media LLC
Link
https://www.nature.com/articles/s41560-024-01545-3.pdf
Reference4 articles.
1. Dolphin, G., Pahle, M., Burtraw, D. & Kosch, M. A net-zero target compels a backward induction approach to climate policy. Nat. Clim. Change 13, 1033–1041 (2023). This work stipulates that maximizing policy credibility is key to align private investors’ expectations with net-zero targets.
2. Quemin, S. & Trotignon, R. Emissions trading with rolling horizons. J. Econ. Dyn. Control 125, 104099 (2021). This work develops the rational for rolling finite horizon modelling of carbon markets and finds that such a model can replicate the EU ETS price dynamics up till 2018.
3. Pahle, M. et al. Safeguarding the energy transition against political backlash to carbon markets. Nat. Energy 7, 290–296 (2022). This work establishes the economic and political conditions under which future dismantling of the cap is likely, which is the root cause of low credibility.
4. Brunner, S., Flachsland, C. & Marschinski, R. Credible commitment in carbon policy. Clim. Policy 12, 255–271 (2012). This work establishes general considerations and trade-offs related to climate policy commitments and proposes legal and political devices for how to enhance their credibility.
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