Do Polluters Pay Under Grandfathering
Rather than examining the law, we use economic theory to answer the question of whether polluters pay under grandfathering. Under grandfathering, polluters receive their emission rights free of charge, whereas under auctioning, polluters have to purchase the allowances. Nash 2000 13 finds that ' grandfathering runs contrary to the polluter pays principle's core, violating even the principle's weak form'. He states 'The core of the polluter pays principle argues that neither the government nor...
REFERENCES Aro
Anderson, J. and I. Skinner 2005 , 'The European Union's Approach to Reducing Greenhouse Gas Emissions', Journal for European Environmental and Planning Law JEEPL p. 92. Arnulli, A. 1995 , 'Private applicants and the action for annulment under Art.173 of the EC Treaty', CMLR, p. 7. Barton, J. 2006 , 'Tackling Aviation Emissions the Challenges Ahead', JEEPL, Berlin, The Lexxion Publisher, Volume 3, Number 4, p. 322. Comhaire, G. 2001 , 'En route pour l'industrie verte', La Libre Belgique, 23...
Abuse
Whether national measures taken within the framework of the EU ETS system that impact the propensity to abuse could be declared incompatible with the common market on the basis of a joined application of Articles 3 g , 10 2 and 82 EC Treaty constitutes a far from trivial question. This is particularly so in light of the considerable gaps existing in the Courts interpretations to this date. A national measure can only be declared incompatible with the Community law if it 1 gives rise to...
The Legal Perspective
From economic literature, we learn that the efficiency and the effectiveness of the regulatory approach through emissions trading are attractive factors.14 It is exactly stemming from these instrumental characteristics that emissions trading has become so popular in the field of climate change policy it simply saves money when using this instrument. When we put the emissions trading instrument, which is in fact an economic instrument, into a legal perspective, a hurdle has to be jumped. It is...
Case Law Regarding Ex Post Adjustments
This section gives an overview of the most important case law regarding ex post adjustments. First, we discuss some national case law as delivered in Belgium, The Netherlands and Germany, after which we elaborate on case law from the Court of First Instance in which the rejection by the Commission of ex post adjustments as proposed by Germany was found not acceptable. 4.2 National Case Law 4.2.1 The Netherlands Within the Netherlands, the issue of ex post interventions was considered in the...
REFERENCES Ppr
Aulisi, A. et al. 2005 , WRI White Paper Greenhouse Gas Emissions Trading in U.S. States Observations and Lessons from the OTC NOx Budget Program, Washington, US World Resources Institute. Bird, L. et al. 2007 , Technical Report No. NREL TP-640-41076 Implications of Carbon Regulation for Green Power Markets, Golden, US National Renewable Energy Laboratory. Bluemel, E.B. 2007a , 'Unraveling the Global Warming Regime Complex Competitive Entropy in the Regulation of the Global Public Good',...
Edward Elgar
Cheltenham, UK Northampton, MA, USA The Editors and Contributors Severally 2008 All rights reserved. No part of this publication may be reproduced, stored in a retrieval system or transmitted in any form or by any means, electronic, mechanical or photocopying, recording, or otherwise without the prior permission of the publisher. Edward Elgar Publishing, Inc. William Pratt House 9 Dewey Court Northampton Massachusetts 01060 USA A catalogue record for this book is available from the British...
Problem Definition Reasons For This Book
Emissions trading can no longer be seen as just an interesting theoretical exercise this market-based approach has developed an increasingly important role, first within the environmental law framework of the USA and later also within that of the EU. The instrument of emissions trading has been applied in order to combat significant environmental problems like acid rain, ozone-depleting substances and climate change. Regarding the two latter problems, the instrument is applied both on the...
REFERENCES Xbw
Armenteros, M.F. 2005 , 'State Aid Issues Raised by the Implementation of Climate Change Policy Instruments', in M. Bothe and E. Rehbinder eds. , Climate Change Policy, Utrecht, Eleven International Publishing, pp. 219-57. Barber, N.W. 2005 , 'The Limited Modesty of Subsidiarity', European Law Journal, 11 3 , 308-25. Betz, R., K. Rogge, and J. Schleich 2006 , 'EU Emissions Trading an Early Analysis of National Allocation Plans for 2008-2012', Climate Policy, 6 4 , 361-94. Betz, R. and M. Sato...
Contents
List of Contributors List of Abbreviations Michael Faure and Marjan Peeters PART II GREENHOUSE GAS EMISSIONS TRADING IN THE EU 2. Legislative choices and legal values considerations on the further design of the European greenhouse gas Emissions Trading Scheme from a viewpoint of democratic 3. Too much harmonization An analysis of the Commission's proposal to amend the EU ETS from the perspective of legal principles 53 Javier De Cendra De Larrag n 4. The 'Emissions Trading Scheme' case-law some...
Structure Of The Book
As the table of contents shows, the book is divided into four parts and fourteen chapters. This first part contains this editorial foreword drafted by the editors, followed by a general introduction concerning the legislative choices within the European greenhouse emissions trading scheme by Marjan Peeters in chapter 2. Part 2 discusses the greenhouse gas emissions trading system in the EU from a critical economic and legal perspective. Javier De Cendra de Larragan addresses the allocation of...
The Interpretation Of The Commissions Guidelines
Under Article 211 of the EC Treaty, the Commission is charged with ensuring that the provisions of the Treaty and the measures taken by the institutions pursuant to the Treaty are applied. 'This means the Commission has been given primary responsibility for monitoring the application of European law in the Member States.'53 The most important instrument at the Commission's disposal is the procedure laid down in Article 226. This provides that the Commission may bring a matter before the Court...
The Problem Of Emissions Leakage
Emissions leakage occurs when there is 'a reduction in emissions of greenhouse gases within the state that is offset by an increase in emissions of greenhouse gases outside the state.'43 The United States Environmental Protection Agency EPA notes that emissions leakage 'occurs when economic activity is shifted as a result of the emission control regulation and, as a result, emission abatement achieved in one location that is subject to emission control regulation is offset by increased...
REFERENCES Cjy
Betz R. and M. Stato 2006 , 'Emissions Trading Lessons Learnt from the 1st Phase of the EU ETS and Prospects for the 2nd Phase', 6 Climate Policy 351-9. Betz R., K. Rogge and J. Schelich 2006 , EU Emissions Trading An Early Analysis of National Allocation Plans for 2008-2012, Working Paper, Fraunhofer Institute. Bohm, P. 1999 , International Greenhouse Gas Emission Trading - With Special Reference to the Kyoto Protocol. TemaNord 1999 506. Stockholm Department of Economics. B hringer, C., T.F....
The Principle of Equality Criteria for its application
The principle of equality in Community law functions both as a powerful tool for pursuing ever deeper Community-wide harmonization within the internal market and, in the hands of the European courts, to test the legality of Community and domestic legislation implementing the former. The principle of equality as applied by the European courts requires that competitors are treated similarly, and that differential treatment be objectively justified. In general, two elements are required to...
Word Of Thanks
As editors of this book we are grateful to all contributors for their willingness to participate in this highly interesting and challenging project and for meeting the stringent deadlines we imposed upon them. The METRO Institute has for many years received support from a consortium of industries for carrying out research into the legal and economic aspects of emissions trading.10 Moreover, The Netherlands Ministry of the Environment VROM sponsored a research team which evaluated the reform of...
INTRODUCTION Gyk
While many may view the United States of America's refusal to participate in the Kyoto Protocol as a strategic effort to undermine mandatory greenhouse gas GHG reduction targets - a view not without some merit, regional efforts to combat climate change within the United States can provide valuable information about the design of effective regional GHG emissions trading schemes outside the United States. Indeed, despite the United States' reluctance to join the Kyoto Protocol and accept...
Appendix
Questions asked to the Court of First Instance After the approval decision of the Commission, can a Member State freely modify all the propositions of its national allocation plan NAP or only the propositions previously rejected by the Commission Case T-178 05 - United Kingdom v. Commission - 23 November 2005 . Can a competitor, under a national allocation plan, receive an advantage that an comparable company cannot receive Is the Commission's decision, concerning the economical validity of the...
REFERENCES Qyl
Alberola, E. and J. Chevallier 2007 , 'European Carbon Prices and Banking Restrictions Evidence from Phase 1 2005-2007 ', Economix Working Paper 2007-32. Alberola, E., J. Chevallier and B. Cheze 2008 , 'Price Drivers and Structural Breaks in European Carbon Prices 2005-2007', Energy Policy 36, 787-97. Betz, R. and M. Sato 2006 , 'Emissions Trading Lessons Learnt From the 1st Phase of the EU ETS and Prospects for the Second Phase', Climate Policy 6, 351-59. Cames, M. and A. Weidlich 2004 ,...
Emission Trading And State Aid
This section examines to what extent the State aid provision of EC Competition law guides Member States to select the least distortive allocation format. As in the previous section, the two free allocation mechanisms examined are grandfathering and the Performance Standard Rate System. In order to address this question, first it has to be established if both allocation mechanisms fall within the ambit of the State aid rules and which one of them gives rise to less anticompetitive concern. Given...
Carbon Emission Trading Law And Economics
Ackerman, B.A. and R.B. Stewart 1984 , 'Comment Reforming Environmental Law', Stanford Law Review, 37 5 , 1333-65. Ackerman, B.A. and R.B. Stewart 1988 , 'Reforming Environmental Law The Democratic Case for Market Incentives', Columbia Journal of Environmental Law, 13, 171-99. Baldwin, R. 2008 , 'Regulation Lite The Rise of Emissions Trading', Law Society Economy Working Papers, and http ssrn.com abstract 1091784. Van Calster, G. 2008 , 'Against Harmonisation - Regulatory Competition in Climate...
Ex Post Analysis Of The First Phase Of Eu Ets
Has the EU ETS met its expectations by delivering emissions abatement at least cost And has the EU ETS negatively affected the competitiveness of European industry or industrial sectors The first phase of the EU ETS 2005-2007 has come to an end, and as data of this phase are being collected, processed and published, researchers can start addressing these questions in a quantitative way. 3.1 A Closer Look at the Market for EU Allowances EUAs Prices and Volumes Three major types of markets for...
The Polluter Pays Principle
The polluter pays principle is defined neither in the EC Treaty nor in the case law of the European courts. Article 175 EC refers to it as one of the guiding principles of Community law, and it is at the basis of the guidelines on environmental state aid.27 The ECJ related the polluter pays principle to the principle of proportionality in Standley.28 In that case, a number of farmers 25 Van den Bergh 1996, p. 364 . 27 Community Guidelines on State Aid for Environmental Protection, OJ C 82,...