Pablo del Río González

The interaction between emissions trading and renewable electricity support schemes. An overview of the literature

The public promotion of electricity from renewable energy sources coexists in many countries with the recent implementation of emissions trading schemes. As shown by several papers, this coexistence may lead to significant interactions between both instruments, in the form of synergies and conflicts. This paper provides an overview and analysis of the literature on such coexistence and interactions. A major conclusion is that policy measures aiming at exploiting the synergies between both instruments should be implemented. The greatest synergy effects from the use of both instruments take place through appropriate coordination of their targets. Another key finding is that, although some stylised facts can be inferred from the studies, some results from those complex interactions are context-specific since they depend on the design of the instruments in particular countries. In spite of the significant policy implications of such interactions for the effective and cost-effective functioning of both instruments, this is a surprisingly under searched field. It is so concerning, both, theoretical and empirical analysis.

Harmonization versus decentralization in the EU ETS: an economic analysis

Abstract Although certain guidelines have been put forward by the European Commission, Member States (MS) have had a considerable degree of freedom to elaborate their national allocation plans (NAPs) and decide on key elements for the first commitment period of the EU emissions trading scheme (EU ETS)(2005–2007). While some favour this decentralized approach, arguing that it provides flexibility and allows the consideration of ‘national circumstances’, it may also bring many problems, in particular a possible distortion of sectoral competition. This article reviews and analyses the arguments for and against delegating the decision on key allocation elements to the MS, it discusses different degrees and alternatives for harmonization of those key elements, and analyses their pros and cons according to several criteria. The article concludes that harmonization is generally preferable to a decentralized approach, although this preference depends on the specific elements and on the assessment criteria considered.

Public policy and clean technology promotion. The synergy between environmental economics and evolutionary economics of technological change

Obstacles to clean technology development, innovation and diffusion are not only related to the lack of internalisation of environmental externalities in production costs, as defended by traditional environmental economics. Empirical studies show that many other obstacles prevent these technologies from penetrating the market. The relevance of these obstacles differs between sectors, firms and technologies. Consequently, a more focused approach is proposed. By taking a look at the specific, real-world barriers to clean technologies, a policy framework as well as some specific measures that target those barriers are suggested. These instruments are useful and complementary in a policy framework that, in addition to specific instruments, takes into account the influence of the style of regulation and the configuration of actors in the environmental technological change process. This paper proposes a coherent framework integrating environmental policy and technology policy instruments. This is deemed necessary in the technological transition to sustainable development.

A multinomial logit model of the factors influencing the adoption of environmental technologies in the pulp and paper sector in Spain

This paper provides an econometric analysis of the factors leading to environmental technology adoption in the pulp and paper industry in Spain. Three sets of interrelated factors influencing the widespread adoption of these technologies are considered: factors external to the firm, characteristics of the environmental technology and internal characteristics and conditions of the potential adopters. A multinomial logit model is applied to the pulp and paper sector in Spain to explain the role of those factors in the adoption of different environmental technology types. It is shown that this adoption does not depend on environmental regulation but rather on market and economic variables (i.e., cost savings and the exploitation of a green image).

Implementing the EU emissions trading directive in Spain: a comparative study of corporate concerns and strategies in different industrial sectors

Although emissions trading has proved cost effective at the theoretical level, a very conflicting issue (which may lead to significant administrative costs) is the distribution of allowances between polluting sources. There are winners and losers in this process and, of course, an incentive to get as many allowances as possible. The NAPs are, therefore, a relevant source of conflict between interest groups and their final version reflects the interactions between actors with different interests, strategies and negotiation power. In this context, the Spanish NAP is no exception. By adopting a Public Choice perspective, this paper takes a closer look at the Spanish allocation process, analysing the interests and strategies of the different actors and their interactions. At the individual firm level, the Directive was considered a big threat. At the sector level, distinct sectors put forward different arguments in order to have more allowances allocated to them. Coalitions at different levels were created and lobbying already started very early in the process. The negotiations reflected the tension between the need to control emissions, the arguments put forward by firms and sectors and the minimisation of the negative impact on the overall economy.