Dr. Barbara Buchner announces the publication by the Milan based, Fondazione Eni Enrico Mattei (FEEM), of a working paper - The Title: Over-Allocation or Abatement? A Preliminary Analysis of the EU ETS Based on the 2005 Emissions Data.

The 49 page paper is co-authored by Denny Ellerman of the Sloan School of Management at MIT, and Barbara Buchner of FEEM, and is available for download at:

 http://www.feem.it/NR/rdonlyres/3EDF8AEF…

Abstract:

“This paper provides an initial analysis of the EU ETS based on the installation-level data for verified emissions and allowance allocations in the first trading year. Those data, released on May 15, 2006, and subsequent updates revealed that CO2 emissions were about 4% lower than the allocated allowances. The main objective of the paper is to shed light on the extent to which over-allocation and abatement have taken place in 2005. We propose a measure by which over-allocation can be judged and provide estimates of abatement based on emissions data and indicators of economic activity as well as trends in energy and carbon intensity. Finally, we discuss the insights and implications that emerge from this tentative assessment.

Keywords: Climate Policy, Emissions Trading, Allocation, Environmental Effects.”
l

***********************

Dr. Barbara K. Buchner
Fondazione Eni Enrico Mattei (FEEM)
Campo S. M. Formosa, Castello 5252
I-30122 Venice
Italy
Tel: +39 041 2711 470
Fax: +39 041 2711 461
E-mail:  barbara.buchner at feem.it
homepage: http://www.feem.it/NR/Feem/resources/cv/…

**********************

We bring here one table and three figures in order to show the direction of this industry-oriented study: