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A flexible CO2 targeting regime

  • John P. Conley (Professor)
Publiceringsår: 2011
Språk: Engelska
Sidor: 297-308
Publikation/Tidskrift/Serie: Economics Bulletin
Volym: 31
Nummer: 1
Dokumenttyp: Artikel
Förlag: Economics Bulletin


According to EU regulations, CO2 emissions capped by the EU emission trading system must decline by 1.74 percent per year from 2013 and onwards. This paper argues that it is necessary to allow short term fluctuations in emissions in order to avoid unnecessary volatility in the real economy. An analysis of emissions data from the European Union and the United States reveals systematic fluctuations of some +/- 5 percent a year around the long run trend. Hence, the Emission Trading System (ETS) should be modified to better accommodate temporary variations in emissions.



  • Social Sciences
  • CO2
  • flexible policy targeting
  • policy implementation



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