TY - JOUR
T1 - A Comparative Analysis of Emissions Trading Systems
T2 - Cost Efficiency and Environmental Jurisdictional Authority Overlap
AU - Ji, Philip Inyeob
AU - Mulenga, Richard
AU - Bhandari, Seema Bogati
N1 - Publisher Copyright:
© 2022 Walter de Gruyter GmbH, Berlin/Boston.
PY - 2022/8/1
Y1 - 2022/8/1
N2 - This study conducts a comparative analysis of selected emissions trading systems (ETS) by examining them in terms of cost efficiency and jurisdictional authority overlap. Findings show that, the selected allowances markets generally exhibit cost inefficiency as manifested by price volatility. It is also found that ETS environmental jurisdictional overlaps are largely caused by the overly centralized environmental policy regulation. Literature review indicates that practical approaches to mitigating price volatility and jurisdictional authority problems include, among others, linking of ETS jurisdictions as exemplified by the linked California-Quebec ETS, integration of allowances markets, switching from emission-based taxation to consumption-based taxation, and development of the derivatives markets. Streamlining and delegation of environmental laws and judicial reviews are some of the efforts that could help mitigate jurisdictional overlap disputes.
AB - This study conducts a comparative analysis of selected emissions trading systems (ETS) by examining them in terms of cost efficiency and jurisdictional authority overlap. Findings show that, the selected allowances markets generally exhibit cost inefficiency as manifested by price volatility. It is also found that ETS environmental jurisdictional overlaps are largely caused by the overly centralized environmental policy regulation. Literature review indicates that practical approaches to mitigating price volatility and jurisdictional authority problems include, among others, linking of ETS jurisdictions as exemplified by the linked California-Quebec ETS, integration of allowances markets, switching from emission-based taxation to consumption-based taxation, and development of the derivatives markets. Streamlining and delegation of environmental laws and judicial reviews are some of the efforts that could help mitigate jurisdictional overlap disputes.
KW - allowances
KW - auctions
KW - efficiency
KW - emissions trading system
KW - GHG emissions
UR - http://www.scopus.com/inward/record.url?scp=85136179280&partnerID=8YFLogxK
U2 - 10.1515/ajle-2022-0058
DO - 10.1515/ajle-2022-0058
M3 - Article
AN - SCOPUS:85136179280
SN - 2154-4611
VL - 13
SP - 173
EP - 193
JO - Asian Journal of Law and Economics
JF - Asian Journal of Law and Economics
IS - 2
ER -