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[ D] In January 2005, i.e. shortly before the coming-into-force of the Kyoto Protocol, the European Union started off an EU-internal emissions
trading scheme (EU ETS) as the central pillar of European climate policy to comply with the Kyoto Protocol. The EU ETS under the European
Burden Sharing Agreement implies a hybrid regulation scheme since sectors of domestic economies that are not covered by the emissions trading
scheme (e.g. household, transport) require complementary emission regulation.
In this context our theoretical as well empirical research focuses on the efficiency aspects of the hybrid regulation within the EU. Another
issue concerns the question how the initial allocation of permits within the National Allocation Plans (NAPs) has to be designed.
