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Annual Review of Resource Economics

Volume 15, 2023

The Market Stability Reserve in the EU Emissions Trading System: A Critical Review

Abstract

Having experienced low prices for about a decade, the European Union Emissions Trading System has been supplemented with the market stability reserve (MSR) that adjusts the supply of allowances to market outcomes. We critically review the literature assessing the performance of the MSR against several policy objectives. In doing so, we cover both conceptual aspects and quantitative assessments. We conclude by pointing out important policy implications and open issues for further research.

Keyword(s): climate policy, emissions trading, EU ETS, JEL H23, JEL Q54, JEL Q58, overlapping policies, stability mechanism
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2023-10-05
2024-05-01
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/content/journals/10.1146/annurev-resource-111820-030145
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The Market Stability Reserve in the EU Emissions Trading System: A Critical Review
Annual Review of Resource Economics 15, 131 (2023); https://doi.org/10.1146/annurev-resource-111820-030145
/content/journals/10.1146/annurev-resource-111820-030145
/content/journals/10.1146/annurev-resource-111820-030145
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