Abatement and Allocation in the Pilot Phase of the EU ETS

Barry Anderson, Corrado Di Maria

Research output: Contribution to journalArticlepeer-review

133 Citations (Scopus)


We use historical industrial emissions data to assess the level of abatement and over-allocation that took place across European countries during the pilot phase (2005–2007) of the European Union Emission Trading Scheme. Using a dynamic panel data model, we estimate the counter factual (business-as-usual) emissions scenario for EU member states. Comparing this baseline to allocated and verified emissions, we find that both over-allocation and abatement occurred, along with under-allocation and emissions inflation. Over the three trading years of the pilot phase we find over-allocation of approximately 280 million EUAs and total abatement of 247 Mt CO2. However, we calculate that emissions inflation of approximately 73 Mt CO2 also occurred, possibly due to uncertainty about future policy design features.
Original languageEnglish
Pages (from-to)83-103
Number of pages21
JournalEnvironmental and Resource Economics
Issue number1
Publication statusPublished - Jan 2011

ASJC Scopus subject areas

  • Aerospace Engineering
  • Management, Monitoring, Policy and Law


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