• search hit 1 of 1
Back to Result List

After Monetary Policy, Climate Policy: Is Delegation Key to EU ETS reform?

  • Since the crash of carbon prices in phase II of the European Union Emissions Trading System (EU ETS), many have argued that the low price mirrors structural failures requiring intervention. A wide range of reform options have been suggested, including delegating the governance of the carbon market to an independent authority. This article analyses the debate by reconstructing the various arguments for or against reform. Three possible drivers of the price decline are investigated: (1) exogenous shocks; (2) insufficient credibility; and (3) market imperfections. It is argued that the extent to which a low price is problematic and warrants reform depends on the specific objectives associated with the EU ETS and the perception on the functioning of the market. A two-dimensional EU ETS Reform Space, comprising the degree of price certainty within the EU ETS and the level of delegation, is devised. Within the Reform Space, EU ETS reform options currently discussed are mapped. This descriptive structure offers a framework to clarify whether delegation responds to various concerns with respect to the EU ETS. Delegation might enhance flexibility under unforeseen circumstances, decrease policy uncertainty, and increase the credibility of long-term policy commitments. However, higher degrees of delegation face challenges including democratic legitimacy and political feasibility.

Export metadata

Additional Services

Share in Twitter Search Google Scholar
Metadaten
Document Type:Article
Language:English
Author(s):Christian FlachslandORCiD, G. Grosjean, W. Acworth, R. Marschinski
Parent Title (English):Climate Policy
Publisher:Taylor & Francis
Publication year:2016
First Page:1
Last Page:25
DOI:https://doi.org/10.1080/14693062.2014.965657
Release Date:2015/10/29
Tag:Carbon authority; Carbon central bank; Carbon price; Delegation; EU Emissions Trading System; Market stability reserve
Volume:16
Issue:1
Hertie School Research:Centre for Sustainability
Licence of document (German):Metadaten / metadata
Verstanden ✔
Diese Webseite verwendet technisch erforderliche Session-Cookies. Durch die weitere Nutzung der Webseite stimmen Sie diesem zu. Unsere Datenschutzerklärung finden Sie hier.