Working Paper

Emissions Trading, CDM, JI, and More - The Climate Strategy of the EU


  • Klepper
  • G.
  • Peterson
  • S.
Publication Date

The objective of this paper is to assess the likely allocation effects of the current cli-mate protection strategy as it is laid out in the National Allocation Plans (NAPs) for the European Emissions Trading Scheme (ETS). The multi-regional, multi-sectoral CGE-model DART is used to simulate the effects of the current policies in the year 2012 when the Kyoto targets need to be met. Different scenarios are simulated in or-der to highlight the effects of the grandfathering of permits to energy-intensive instal-lations, the use of the project-based mechanisms (CDM and JI), and the restriction imposed by the supplementarity criterion.

Kiel Institute Expert


JEL Classification
D58, F18, Q48, Q54

Key Words

  • CDM and JI
  • Computable General Equilibrium Model
  • DART
  • EU
  • EU emissions trading scheme
  • Kyoto targets
  • National Allocation Plans