| 01/2018

Installations versus Companies. Making the right choice in the design of an Emissions Trading Scheme

The design of an emissions trading scheme (ETS) is a complex task which needs to reflect fundamental economic aspects and practicalities as well as regulatory and legal traditions, structural aspects of the regulated sectors and, last but not least, a wide range of political considerations. This paper discusses the issue of installation- versus company-based approaches for an ETS with respect to different design issues of an ETS implementation.