Benchmark-based emission allocation in a cap-and-trade system
Journal Article
(2002)
Author(s)
Heleen Groenenberg (Universiteit Utrecht)
Kornelis Blok (Universiteit Utrecht)
Affiliation
External organisation
DOI related publication
https://doi.org/10.3763/cpol.2002.0209
Final published version
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Publication Year
2002
Language
English
Affiliation
External organisation
Journal title
Climate Policy
Issue number
1
Volume number
2
Pages (from-to)
105-109
Downloads counter
98
Abstract
One of the important bottlenecks for the introduction of emission trading is how allowances should be distributed among the participants in a trading scheme. Both grandfathering on the basis of historic emissions and auctioning have important drawbacks. In this paper, we propose an allowance distribution rule based on benchmarking of production processes: each company’s share in the total allowance is determined by its production level and a reference emission level per product. The scheme shows some important advantages compared to other schemes.