Paying the Carbon Price analyses the practice of freely allocating permits in Emissions Trading Schemes (ETSs) and demonstrates how many heavy polluters participating in ETSs are not yet paying the full price of carbon. This innovative book provides a framework to assist policymakers in the design of transitional assistance measures that are both legally robust and will support the effectiveness of the ETSs whilst limiting negative impacts on international trade.
Within the realm of international and comparative law, this book closes the gap between the legal frameworks of ETSs in practice, the economic research data and the doctrinal analysis of WTO law. These interesting insights and fresh ideas explore the connection between ETSs, the problems with free allocation of emission permits and the analysis of complex legal instruments.
This accessible resource will be invaluable for those researching and teaching climate change law and policy, international trade law and environmental economics. It will also be a useful tool for policymakers, lawyers and economists.
‘Dr. Elena de Lemos Pinto Aydos’ comprehensive account of past and present emissions trading schemes suggests that free licenses to pollute in reality is a subsidy conferring windfall profits to a small number of energy-intensive companies. Her elaborate legal analysis convincingly shows that under the rules of the World Trade Organization carbon emission trading benefits will be deemed actionable and thus should require advance notification, as countervailing duties could be justified. With trade protectionism concerns looming in the background this is an extremely timely book to inform carbon market observers and policy makers.’
– Mikael Skou Andersen, Aarhus University, Denmark
‘This book is an important contribution to understanding the relation between the oftentimes overestimated phenomenon of carbon leakage and the resulting, frequently unjustified, free allocation to heavy polluters. The volume excels in applying an interdisciplinary law-and-economics approach in a comprehensive analysis of three major carbon markets. It is a timely addition to the literature with obvious relevance beyond the cases; a “must read” for all scholars and practitioners interested in an efficient, effective, and fair climate policy.’
– Sven Rudolph, Kyoto University, Japan
‘The Paris Agreement on climate change has made it clear that the attention of scholars and practitioners has to shift to the functioning and interaction of diverse climate policies. This excellent book addresses a stubborn issue that is critical for success: carbon leakage. The author very ably presents the theory and practice of carbon leakage for several climate policies while paying due attention to the legal realm, in particular WTO. This book is a must-have for both researchers and practitioners alike.’
– Stefan Weishaar, Groningen University, the Netherlands
Elena de Lemos Pinto Aydos, Lecturer, University of Newcastle, Australia.