Schürer, Laura (2021) Long-Term Effects of Climate Campaigns on Total Greenhouse Gas Emissions under Cap-and-Trade Schemes: The Example of the EU Emissions Trading System and the Market Stability Reserve. Masters, Carl von Ossietzky Universität Oldenburg.


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Facing the immense societal challenge to limit global warming, measures to mitigate climate change are becoming increasingly important. These include efforts to reduce individual carbon footprints as well as key policies like cap-and-trade schemes that set a cap on greenhouse gas emissions and allow for trade of emission permits to achieve cost-effective emission reduction. However, Perino (2015) derived that climate campaigns that aim at individual carbon footprint reductions by decreasing the demand of specific goods tend to even increase overall greenhouse gas emissions if these goods are produced by sectors regulated by a partial cap-and-trade scheme like the EU Emissions Trading System (EU ETS), the world’s biggest carbon market. Due to the new rules that the EU adopted in 2018 and that include a market stability reserve (MSR) and a cancelation mechanism for the EU ETS, these findings are partially invalidated. The present thesis updates Perino’s (2015) results by extending his analytical model and pursues the question, what the effects of temporary, sector-specific climate campaigns on long-term total emissions under a partial cap-and-trade scheme with a market stability mechanism are, particularly investigating the example of the EU ETS and the MSR. The results indicate the importance of being aware of the regulatory environment and possible interaction effects with climate campaigns. Considering the current rules of the EU ETS, under specific conditions, climate campaigns can have a total emissions reducing effect due to the MSR and the cancelation mechanism. However, the size of the effect is smaller than probably expected by consumers. Additionally, a framework for the differentiation of six cases based on the functioning of the MSR is provided and the increased complexity of the EU ETS due to the reform is critically discussed.

Item Type: Thesis (Masters)
Uncontrolled Keywords: Cap-and-Trade schemes; Carbon markets; Emissions trading; EU Emissions Trading System; EU ETS; Market Stability Reserve; MSR; Cancelation mechanism; Carbon leakage; Green paradox; Overlapping policies; Climate campaigns; Carbon footprint; Green Consumerism; Sustainable consumer behaviour
Subjects: Social sciences > Economics
Social sciences > Natural resources, energy and environment
Divisions: School of Computing Science, Business Administration, Economics and Law > Department of Business Administration, Economics and Law
Date Deposited: 25 Mar 2021 08:32
Last Modified: 25 Mar 2021 08:50
URN: urn:nbn:de:gbv:715-oops-51102

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