Carbon trading in the policy mix

By S. Sorrell, Jos Sijm. 2003

310 citations recorded by the source corpus.

The Kyoto Protocol is stimulating the development of emissions-trading schemes at the national and international levels. These are being introduced alongside existing policy instruments such as carbon taxes and negotiated agreements, leading to complex problems of policy interaction. But the topic of policy interaction remains under-researched. This paper aims to improve understanding of such interactions by examining the conditions under which a cap-and-trade scheme for carbon-dioxide emissions may usefully coexist with carbonsenergy taxes, support mechanisms for renewable electricity, and policies to promote energy efficiency. The paper argues that each of these instrument combinations may be acceptable, provided they contribute to either improving the static or dynamic efficiency of the trading scheme, or delivering other valued policy objectives. But, since the coexisting instruments may raise overall abatement costs while contributing nothing further to emission reductions, the objectives and trade-offs within the policy mix must be explicit. Copyright 2003, Oxford University Press.

Subfields: Economics and Econometrics, Environmental Engineering, Renewable Energy, Sustainability and the Environment

View Paper: https://www.semanticscholar.org/paper/8acbcd4fd5f9ea65bd65c7b816ac5574759a87f0

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Citations in the corpus

Reconceptualising the 'policy mix' for innovation (2011, background): “The most significant early diffusion of the concept has been into the literature on environmental policy and regulation (see for instance ETAN Expert Working Group, 1998; Sorrel and Sijm, 2003).”
How to deal with the rebound effect? A policy-oriented approach (2016, background): “Some authors, however, reflect on the risk that the EU ETS and other schemes would discourage efficiency improvements and in some cases actually induce increases in overall energy and GHG emissions because allowances remain constant irrespective of the overall efficiency of the affected system (Chit”
Using a Policy Mix for Pollution Control { A Review of Economic Literature (2012, unknown): “A broad body of literature pleads for supplementing pollution control policies by information measures to foster the diffusion of energy-efficient technologies (Bennear and Stavins 2007; Jaffe et al. 2005; Rolfe et al. 1999; Sijm 2005; Sorrell and Sijm 2003).”
Harnessing theories of the policy process for analysing the politics of sustainability transitions: A critical survey (2017, background): “In particular, major empirical advances have been made during the introduction of the EU Emissions Trading System (EU ETS) due to concerns regarding the interaction of this novel market-based instrument with various other policy instruments, such as support schemes for renewable energy (del Río Gonz”
The parameters of policy portfolios: verticality and horizontality in design spaces and their consequences for policy mix formulation (2015, background): “, 2013a) – how to enhance or alter mixes over time so that they are able to continue to meet old goals and take on new ones (Kay, 2007; van der Heijden, 2011); and how to sequence or phase in instruments over time (Sorrell and Sijm, 2003; Taeihagh et al., 2013a; Ganghof, 2006).”
Energy efficiency and the policy mix (2016, background): “Since then there has been an increasing use in other fields of public policy, particularly in environmental policy (e.g., Fankhauser, Hepburn, & Park, 2010; Gunningham & Sinclair, 1999; Sorrell & Sijm, 2003).”
Why does emissions trading under the EU Emissions Trading System (ETS) not affect firms’ competitiveness? Empirical findings from the literature (2018, background): “Thus, in both cases, the price increase for consumers should be the same (Fabra & Reguant, 2014; Klemperer, 2008; Sorrell & Sijm, 2003).”
Interactions between Renewable Energy Policy and Renewable Energy Industrial Policy: A Critical Analysis of China's Policy Approach to Renewable Energies’ (2013, background): “Such policy interaction has been especially notable in the arena of climate change and clean energy (Sorrell and Sijm, 2003).”
A carbon-capped supply chain network problem (2009, background): “In addition, with a ‘carbon market’ created out of this mechanism, competition amongst firms to become more ‘green’ is fiercer, and a bigger effort has to be made by companies looking to make their products more appealing to the growing number of environmentally-conscious consumers in the market, an”
Political economy constraints on carbon pricing policies: What are the implications for economic efficiency, environmental efficacy, and climate policy design? (2014, background): “…from economic principles, a growing body of research has explored a variety of potential rationales for a mix of climate policies (Bennear and Stavins, 2007; Fischer and Newell, 2008; Fischer, 2008; Jaffe et al., 2005; Lehmann and Gawel, 2013; Lehmann, 2012; Sorrell and Sijm, 2003; Twomey, 2012).”
Complexity and the Economics of Climate Change: A Survey and a Look Forward (2017, unknown): “For recent overview of the current carbon trading schemes, the reader is referred to Perdan and Azapagic (2011) and Sorrell and Sijm (2003).9 In Wang et al. (2012), energy generating companies are modeled as adaptive agents that are bidding in an electricity market with cap-and-trade emission…”
The interaction between emissions trading and renewable electricity support schemes. An overview of the literature (2007, background): “In general, the relationship between emissions trading and other instruments, including RES-E promotion schemes, may take several forms ( Sorrell and Sijm 2005 ):”
An overview of current research on EU ETS: Evidence from its operating mechanism and economic effect (2010, background): “For example, Johnstone [1] and Sorrel and Sijm [2] investigated the interaction between the EU ETS and existing policy instruments such as energy taxes, subsidies to renewable energies, or energy efficiency standards.”
Combining Policies for Renewable Energy: Is the Whole Less than the Sum of its Parts? (2010, background): “However, R&D investments in renewable energy have a high degree of uncertainty and intangibility, not to mention limited appropriability, large economies of scale, and long time horizons (Sorrell and Sijm 2003; Goulder and Parry 2008).”