Rickels et al. (2023): Potential efficiency gains from the introduction of an emissions trading system for the buildings and road transport sectors in the European union

Wilfried Rickels, Christian Rischer, Felix Schenuit, Sonja Peterson IN: Kiel Working Paper, No. 2249, Kiel Institute for the World Economy
ISSN 1862–1155

In the European Union (EU), a second emissions trading system (EU ETS2) covering buildings, road transport and small energy and industrial installations is expected to be introduced from 2027. The authors study the EU ETS2 for the year 2030 using the general equilibrium model DART. In the analysis, the introduction of an EU ETS2 generates about a quarter of the efficiency gains of a comprehensive emissions trading system, assuming that nation states use the flexibility mechanisms of the ESR and compensate for regional abatement leakage through interstate emissions trading.

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