The EUTL Transfer Dataset. Description and Insights

This working paper gives an overview of the three main datasets of the EU Transaction Log (EUTL): the datasets of Operator Holdings Accounts (OHAs), Person Holding Accounts (PHAs), and the EUTL Transfer dataset. It describes in detail how these datasets can be linked, expanded, and analyzed. Particular attention is given to the different possibilities of relating EU ETS accounts to the parent companies and to classifying transactions by establishing different categories. Different options for adding allowance prices to the EUTL Transfer dataset are presented based on analysis of potential forward and futures contracts. The technical descriptions are intended to serve as a background against which to use the EUTL Transfer dataset for future research. A set of guidelines is proposed for researchers intending to employ the datasets in their own analyses.This working paper gives an overview of the three main datasets of the EU Transaction Log (EUTL): the datasets of Operator Holdings Accounts (OHAs), Person Holding Accounts (PHAs), and the EUTL Transfer dataset. It describes in detail how these datasets can be linked, expanded, and analyzed. Particular attention is given to the different possibilities of relating EU ETS accounts to the parent companies and to classifying transactions by establishing different categories. Different options for adding allowance prices to the EUTL Transfer dataset are presented based on analysis of potential forward and futures contracts. The technical descriptions are intended to serve as a background against which to use the EUTL Transfer dataset for future research. A set of guidelines is proposed for researchers intending to employ the datasets in their own analyses

Winners and losers of EU emissions trading : insights from the EUTL transfer dataset

This paper analyzes distributional effects the EU Emissions Trading Scheme (EU ETS) created between participants of the scheme during its first trading period. To this end, a dataset recording all transfers during the first period of the EU ETS, originally at account level, was enhanced by adding information about parent companies, firm characteristics, and carbon prices. A two-step selection model was formulated and applied to the data. To account for a number of uncertainties, sensitivity analysis with regard to forward and futures trading was carried out. Findings confirm that free allocation in excess of actual emissions (‹overallocation›) is a major source of gain generated under the Scheme. The fact that small companies are much less likely to participate in trading is a further cause of distributional effects. This paper also discusses that windfall profits obtained by passing through the cost of freely allocated allowances to consumers are likely to dwarf the gains and losses made on the market for EU Allowances. It is therefore quite likely that the majority of companies covered by the EU ETS generated gains during its first period, either through selling overallocation on the market or by generating windfall profits on product markets. Therefore, decisions about the level of free allocation not only have distributional implications for the participants of an emissions trading scheme but determine the distribution of costs and benefits between covered companies and households

EU emissions trading : the role of banks and other financial actors : insights from the EU transaction log and interviews

This paper is an empirical investigation of the role of the financial sector in the EU Emissions Trading Scheme (EU ETS). This topic is of particular interest because non-regulated entities are likely to have played an important part in increasing the efficiency of the EU ETS by reducing trading transaction costs and providing other services. Due to various reasons (new rules and regulations, reduced return prospects, VAT fraud investigations) banks have reduced their engagement in EU Emissions Trading and it is unclear how this will impact on the functioning of the carbon market. Our regression analysis based on data from the EU Transaction Log shows that large companies and companies with extensive trading experience are more likely to interact with the financial sector, which is why we expect banks’ pulling out of the EU ETS to affect larger companies more significantly. The semi-structured interviews we conducted with representatives of the financial sector, as well as companies liable under the EU ETS, confirm that banks were involved in the EU carbon market in various capacities, specifically as hedging partners for larger companies in the energy sector. Whether this particular role may be taken on by other financial players is unknown at this stage

EU emissions trading : role of banks and other financial actors - insights from the EU transaction log and interviews

This paper is an empirical investigation of the role of the financial sector in the EU Emissions Trading Scheme (EU ETS). This topic is of particular interest because non-regulated entities are likely to have played an important part in increasing the efficiency of the EU ETS by reducing trading transaction costs and providing other services. Due to various reasons (new rules and regulations, reduced return prospects, VAT fraud investigations) banks have reduced their engagement in EU Emissions Trading and it is unclear how this will impact on the functioning of the carbon market. Our regression analysis based on data from the EU Transaction Log shows that large companies and companies with extensive trading experience are more likely to interact with the financial sector, which is why we expect banks’ pulling out of the EU ETS to affect larger companies more significantly. The semi-structured interviews we conducted with representatives of the financial sector, as well as companies liable under the EU ETS, confirm that banks were involved in the EU carbon market in various capacities, specifically as hedging partners for larger companies in the energy sector. Whether this particular role may be taken on by other financial players is unknown at this stage

Ökosteuer hat zu geringerer Umweltbelastung des Verkehrs beigetragen

Allein durch die ökologische Steuerreform sind die Preise für Benzin und Diesel zwischen 1998 und 2003 in Deutschland in mehreren Schritten um über 20 Prozent gestiegen. Der Großteil des aus der Erhöhung der Energiesteuersätze resultierenden Aufkommens wurde zur Stabilisierung der Rentenversicherungsbeiträge verwendet. Hat die Ökosteuer neben diesem fiskalischen Ziel auch einen Beitrag zur nachhaltigen Reduktion des Verkehrsaufkommens der privaten Haushalte in Deutschland, somit zur Verringerung der CO2- Emissionen und damit zum Erreichen des deutschen Kyoto-Ziels beigetragen? Die Beantwortung dieser Fragen setzt die Kenntnis der Preiselastizität der Verkehrsnachfrage in Deutschland voraus, für die bisher kaum Schätzungen vorliegen. In einer neuen DIW Studie wurde diese Preiselastizität auf der Basis von Haushaltsdaten berechnet. Unsere Ergebnisse legen nahe, dass die gefahrenen Kilometer durchaus auf Benzinpreisänderungen reagieren. Eine Ökosteuer im Verkehrssektor allein kann aber kein Klimaretter sein. Sie ist nur eines von vielen Instrumenten im umweltpolitischen Mix.Ecological taxation, Gasoline tax, Price elasticity for miles traveled

empirical evidence from combined industry- and household-level data

We calculate the expected distributional effects of the European Emissions Trading System combining industry and household-level data. By combining data on direct CO2 emissions by production sector from the German Environmental Account with the German Input-Output Accounts, we calculate the CO2 intensity of each sector covered by the EU ETS. We focus on the impact of price increases in the electricity sector, both directly in the form of higher electricity bills for consumers and indirectly through products that use electricity as an input to production. Distributional effects of price increases are analyzed on the basis of the German Income and Expenditure Survey for the year 2008 data and updated to 2013. We confirm the ex-ante expected regressive effect, which is, however, both rather small in magnitude and can be offset and even more than offset by revenue recycling, in particular the reduction of social security contributions on labour income

Capacity Remuneration Mechanisms : Overview, Implementation in Selected European Jurisdictions, and Implications for Switzerland

In many European jurisdictions, capacity remuneration mechanisms are either in use or their implementation is being discussed. In light of falling prices on the wholesale markets for electricity, these mechanisms are meant to generate revenues over and above energy-only market revenues in order for power plants to be able to recover their fixed costs and ensure a reliable energy supply. In the first part of this paper, we present a framework for discussing the different types of capacity remuneration mechanisms currently in operation or under discussion. In a next step, we take a closer look at the implementation status of these mechanisms in France, Germany, and Italy, Switzerland’s main electricity import and export partners. Whereas capacity mechanisms are in place in France and Italy, in Germany the process intended to lead to an overhaul of the current market design is still ongoing

Distributional effects of energy and climate policy

This thesis analyses two energy and climate policy instruments – namely renewable energy policy and the European Union Emissions Trading Scheme (EU ETS) – in the context of the distribution of costs and benefits arising from these policies. Household- and industry-level data, as well as market data on carbon and electricity prices are investigated using a combination of descriptive analysis and econometric methods, including time-series regression and choice modelling. Results imply that industry exemptions from contributing to the cost of both renewable energy policy and emissions trading have led to unexpected and considerable profits to the companies covered by those schemes. This has resulted in households bearing the majority of the costs associated with these policies. Exploratory analysis indicates that low-income households are particularly affected by the associated price increases, because they spend a large fraction of their income on electricity and other emissions-intensive goods. This thesis shows that policy makers have many options at their disposal with which these policies can be made more equitable. The main design choices with regards to emissions trading concern the level of free allocation and the use of revenue from the auctions of the remaining allowances not allocated for free. In relation to renewable energy policy, the scope and extent of exemptions for industry from contributing to the cost of the policy and the structure of wholesale and retail electricity markets play a decisive role. Moreover, policy makers should recognise opportunities to reach both environmental and distributional goals across the whole policy portfolio. One example is the use of auctioning revenue from emissions trading to fund energy efficiency measures targeted at vulnerable households. The results of this thesis suggest that there is no basis for pitching climate protection against equity concerns, but rather that there are many opportunities for policy makers to formulate an integrated approach that addresses both issues concurrently

A Service of zbw The incidence of the European Union Emissions Trading System and the role of revenue recycling: Empirical evidence from combined industry-and household-level data The Incidence of the European Union Emissions Trading System and the Role o

Standard-Nutzungsbedingungen: Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden. Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen. Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Abstract: We calculate the expected incidence of the European Union Emissions Trading System (EU-ETS) using industry and household-level data. By combining data on direct CO 2 emissions by production sector from the German Environmental Account with the German Input-Output Accounts, we calculate the CO 2 intensity of each sector covered by the EU-ETS. We focus on the impact of price increases in the electricity sector, both directly in the form of higher electricity bills for consumers and indirectly through products that use electricity as an input to production. Taking into account behavioral effects derived from an estimated consumer-demand system, we provide incidence calculations on the basis of the German Income and Expenditure Survey for the year 2008 data updated to 2013. We confirm the ex-ante expected regressive effect, which is, however, both rather small in magnitude and can be offset and even more than offset by revenue recycling, in particular the reduction of social security contributions on labor income. Terms of use: Documents i