The EU-Emission Trading System. Goals, Success and Challenges

Term Paper (Advanced seminar) , 2016 , 15 Pages , Grade: 2,0

Politics - Topic: European Union

This term paper discusses how to improve the European Union Emission Trading Scheme to have the lowest possible influence on companies with the highest possible reduction of greenhouse gases. Even though in theory this scheme may appear flawless there are a few conflicts and negative consequences which have a big influence on some participating countries.

To get an overview, the problem of the emissions has to be explained first. After that, it is essential to explain the theory of the European Union Emission Trading Scheme with a summary of the main expected theoretical effects. There must be an empirical evaluation about the real effects in comparison to the theoretical expected ones. This part will be followed by a discussion on how the government needs to change the scheme to improve the consequences. At last, there will be a conclusion which will sum up the outcome of the discussion and give a perspective on the future.

Being and staying healthy is one of the greatest wishes of humanity because it is assuring a longer life. But not only a highly developed health system protects people from illnesses, also living in a clean and safe environment extends the span of life. This is why it is always interesting to discuss new solutions of the government which shall protect the environment, improve our climate and increase our sustainability. In year 1997 the Kyoto protocol was added to the United Nations Framework Convention on Climate Change, short UNFCCC, to reduce those emissions gradually. In addition to this contract the European Union created in 2005 the European Union Emission Trading Scheme, short EU ETS. It allows companies to buy and trade a certain amount of emission permits.

Table of contents

1. Introduction

2. The natural and anthropogenic greenhouse-effect

3. The European Union Emission Trading Scheme
3.1 The effects of pollution on the market
3.2 The Emission Trading Scheme and its expected effects

4. Empirical evaluation

5. Consequences

6. Conclusion

References

• College: ISEC-Institut Supérieur de l’Économie (dern. eufom University)
• Grade: 2,0
• Authors: Ann-Sophie Theuring (Author), Sina Hüfner (Author)
• Publication Year: 2016
• Pages: 15
• Catalog Number: V374554
• ISBN (eBook): 9783668517790
• ISBN (Book): 9783668517806
• Language: English
• Tags: VWL, Volkswirtschaftslehre, Emissions, Emissionshandel, Europa, Emission Trading System, EU Emission Trading System, EU, EU Emissions HAndel, Abgase, Pigovian Tax