Carbon Emission Trading
Table of contents
1. Why free markets are efficient? 3
What are free markets? 3
Market efficiency: marginal benefit equals marginal cost 3
2. Government Intervention or Not? 5
Carbon emissions: negative externalities 5
Government Intervention 5
Pros 6
Cons 6
3. Why is EU-ETS chosen? 7
What is the European Union Emission Trading Scheme? 7
Long term industry reaction 7
4. How does the EU-ETS work? 8
How was it created? 8
Allocation of caps and allowances 8
Price establishment 8
Types of trading allowed 9
Penalty 9
5. Is CET helping? 10
CET Today. 10
Is CET reaching the Kyoto Agreement? 11
References 12
Appendix A - Member states and Emission caps 13
Appendix B - Countries that are listed in the UNFCCC 13
Annex I countries (industrialized countries): 13
Annex II countries (developed countries which pay for costs of developing countries): 14
Annex B countries 14
Appendix C - EU-ETS......
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Approximate Word Count: 2317
Approximate Pages: 9 (260 words per double-spaced page) |