Emissions Trading and the Polluter-Pays Principle : do Polluters Pay under Grandfathering?

Emissions trading is becoming increasingly popular in environmental law. Allowances to trade emissions can either be auctioned off or handed out free of charge by means of grandfathering. Although grandfathering is frequently used in emissions trading schemes, it is a popular view in the economic and legal literature that grandfathering is inconsistent with the polluter-pays principle. We come to a different, more nuanced view. The question of whether polluters pay under grandfathering depends on how the polluter-pays principle is interpreted. We present a taxonomy of interpretations. Based on an efficiency interpretation of the principle, consistency is demonstrated by emphasizing the economic impact of the opportunity costs of gratis allowances and the lump sum nature of the subsidy that is inherent to grandfathering. Inconsistency can only be claimed based on an equity interpretation of the polluter-pays principle. Allocating allowances free of charge means that polluting firms receive a capital gift making their shareholders richer, which may be perceived as unfair. We draw two conclusions. First, contrary to what some have claimed, grandfathering is compatible with an efficiency interpretation of the polluter-pays principle. Second, only auctioning is consistent with an extended form of this principle. Auctioning ensures not only that pollution costs are internalized (efficiency), but also that producers buy their allowances before they pass on those costs to consumers (equity)

The Role of Environmental Economics in Recent Policy Making at the European Commission

This article examines the use of environmental economics at the European Commission in recent policy making concerning climate change, energy, and air pollution. In particular, we describe economic analysis of policy options designed to help the European Union (EU) to achieve its objective of reducing greenhouse gas emissions by 20 percent and increasing the share of renewable energy to 20 percent by 2020. This analysis looked at cost-effectiveness and emission trading options as well as equity issues. We also discuss an economic analysis of policy options for including carbon capture and storage (CCS) in the EU Emissions Trading Scheme. The analysis finds that CCS could result in significant cost savings. The additional costs of making CCS mandatory or using subsidies were also estimated. Economic assessments prepared for the revision of the national emission ceiling directive suggest that air pollution objectives can be met at modest costs and that monetary benefits exceed costs. The assessments also find that limiting the additional costs for poorer Member States does not increase overall costs significantly and that when limited to regional zones, emissions trading of air pollutants could save costs but might lead to hot spots. Copyright 2010, Oxford University Press.

Experimental study of electron ejection by heavy ion irradiation of solids: Observation of forward and backward emitted electron jets

Doubly differential cross sections for electron emission induced by the passage of swift heavy ions such as Fq+ (1.5-2.0 MeV/u) through thin solid foil targets were measured at the Tandem accelerator of the JR Macdonald Laboratory at Kansas State University. The complete angular distribution of electron emission up to 4000 eV (beyond the maximum of the "binary encounter" electron peak) was determined as a function of the projectile charge state (q = 5 and 9) and the target material in a wide Z range: C (Z = 6), At (Z = 13) and Au (Z = 79). Electrons emitted from the foils between 0 and +/-180degrees with respect to the beam axis were energy and angle analysed by means of a toroidal electrostatic electron spectrometer equipped with a 2D position sensitive channelplate detector. In addition to low energy cascade electrons, electrons from collective excitation (plasmons), target Auger electrons, convoy electrons and binary encounter electrons, we also observe a new feature never before seen in electron angular distributions: narrow electron jets ("spikes") emitted along the ion beam axis in forward and backward directions. This observation is made possible by the good angular resolution of our spectrometer and the possibility to record the entire angular distribution in a single run. (C) 2002 Elsevier Science B.V. All rights reserved

Machbarkeitsstudie fuer neue Umweltzeichen in Anlehnung an ISO 14024 (Type I) fuer die Produktgruppe: Photovoltaische Produkte and Anlagen Endbericht

This expert opinion (feasibility study according to ISO 14024) examines the suitability and the possibilities of a realisation of an eco-label for photovoltaic products (PV-products) and PV-plants. Hence, it also deals with the question of how concrete criteria to develop an eco-label in these product fields could be specified. The study began with comprehensive market analysis in order to identify possible products and plant components for which an eco-label would make sense. In the main body of the study, the environmental relevance of the chosen products and plant components was analysed in a deeper way. On the basis of this analysis, it was possible to derive a number of criteria, which were presented and discussed in an expert talk joined by various company representatives and experts in this field. As a result of the expert talk and the whole investigation process an introduction of an eco-label for photovoltaic products with storage batteries can be recommended. A peculiarity of the set of requirements is the computer-related simulations in order to prove the functional reliability. The main focus beside this quality aspects is on the pollutants in the storage media, which is why the transcription of the label is proposed as'... because solar-powered and low-pollutant'. The recommendation for an eco-label to the field of photovoltaic modules and inverters is valid only in a limited way. This has among other aspects to do with the fact that efficiency (factor) criteria for the modules do not deal with 'superior' facts like the whole plant concept (installation) or the production costs. An eco-label for solar modules therefore should contain aspects like recycling and take back as well as a low tolerance rate. An eco-label for inverters can be recommended clearer, but it should not be introduced without the introduction of the one for modules. Main requirements are about their energy efficiency and recycling aspects. (orig.)Beim vorliegenden Gutachten handelt es sich um eine Machbarkeitsstudie nach ISO 14024, in deren Rahmen untersucht wurde, ob und inwieweit das Instrument Umweltzeichen fuer photovoltaische Geraete (PV-Geraete) mit Speichermedien sowie PV-Anlagen geeignet ist und wie diesbezueglich konkrete Anforderungen aussehen koennten. Im Rahmen der Untersuchung wurden zunaechst umfassende Marktanalysen durchgefuehrt, um daraus die Produkte und Anlagen(-Komponenten), die fuer ein Umweltzeichen in Frage kommen, identifizieren zu koennen. Im Hauptteil der Studie ging es um die vertiefende Analyse der Umweltrelevanz der ausgewaehlten Produkte und Anlagen(-Komponenten). Auf der Basis dieser Analyse wurden Anforderungskataloge abgeleitet, die in einem Fachgespraech in einer breiten Runde von Experten und Herstellern vorgestellt und diskutiert wurden. Aus der Studie und dem Fachgespraech konnte ein deutliches Votum fuer ein Umweltzeichen fuer die untersuchten PV-Produkte abgeleitet werden. Eine Besonderheit der vorgeschlagenen Anforderungen liegt in dem Nachweis der Funktionssicherheit der Geraete mittels rechnergestuetzter Simulationen. Als moegliche Umschrift eines Zeichens fuer photovoltaische Geraete mit Speichermedien wird empfohlen: 'Umweltzeichen... weil solarbetrieben und schadstoffarm'. Fuer PV-Module und Wechselrichter gilt eine derartige Empfehlung fuer Umweltzeichen nur eingeschraenkt. Dies liegt z.B. daran, dass Anforderungen bezueglich des Wirkungsgrades der Module aufgrund uebergeordneter' Faktoren wie z.B. dem Gesamtzusammenspiel der Anlage (und damit der Installation) oder aber den Produktionskosten der Module nicht aufrechterhalten werden konnten. Ein Umweltzeichen fuer PV-Module sollte sich primaer auf die Aspekte Ruecknahme, Recycling und geringere Leistungstoleranz beziehen. Fuer PV-Wechselrichter wurden die Schwerpunkte auf die Energieeffizienz und Recyclingfaehigkeit gelegt; das Zeichen sollte jedoch nur gekoppelt mit der Einfuehrung des Umweichens fuer Module realisiert werden. (orig.)SIGLEAvailable from TIB Hannover: RN 8908(2000,274) / FIZ - Fachinformationszzentrum Karlsruhe / TIB - Technische InformationsbibliothekBundesministerium fuer Umwelt, Naturschutz und Reaktorsicherheit, Bonn (Germany)DEGerman