Selected problems of auctioning the greenhouse gas emission allowances
Selected problems of auctioning the greenhouse gas emission allowances

Summary/Abstract: During the third trading period (2013–2020), the EU ETS participants will not be assigned the transferable greenhouse gas (GHG) emission allowances but instead will have to – with some exceptions and deferments – buy them at auctions. The aim of this article is to define the concept of an auction, to specify the criteria that prompted selection of this method for allocating GHG emission allowances, with due regard to their strengths and weaknesses, and to identify the measures of success of the practical application of this method. For this purpose, a review of various definitions of an auction was conducted, followed by a brief comparative analysis of methods for the allocation of GHG emission allowances and a theoretical analysis of the efficiency and effectiveness of allowances auctioning, with various scenarios for the issuing process.

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