The European Commission had assessed the national allocation plans of Member States for a European Emissions Trading System (EU ETS). In this situation the impact of emissions trading on competitiveness and jobs got increasing importance for the public debate.The impacts of EU ETS on Employment and Competitiveness largely depend on the design of the national allocation plan. Especially the emissions reduction target is important, also the question of auctioning vs. grandfathering and the question of the use of flexible mechanisms such as Joint Implementation and the Clean Development Mechanism. The study reviewed existing simulation studies. The overall effects of EU ETS on competitiveness and employment are rather small and are lower than impacts of alternative regulation scenarios.
Discussion and Working Papers
Oberndorfer, Ulrich and Klaus Rennings (2006), The Impacts of the European Union Emissions Trading Scheme on Competitiveness in Europe, ZEW Discussion Paper No. 06-051, Mannheim. Download
Oberndorfer, Ulrich, Klaus Rennings and Bedia Sahin (2006), The Impacts of the European Emissions Trading Scheme on Competitiveness and Employment in Europe - a Literature Review, World Wide Fund for Nature (WWF), Mannheim. Download