Allocation of Emission Allowances within the European Union Emissions Trading Scheme to the Waste Sector

Nina Braschel, Alfred Posch, Vera Pusterhofer

Institute of Systems Sciences, Innovation and Sustainability Research, University of Graz, Graz, Austria.

DOI: 10.4236/lce.2013.44015                

Abstract

The present study develops an approach explicitly to cover the waste sector under the Emissions Trading Scheme of the European Union (EU ETS). The objective is to analyze various allocation possibilities and the resulting monetary burdens for the waste sector. Three different allocation variants for allocating emission allowances and their financial burden to the waste sector are developed. These variants support implementation within the EU ETS in the third trading period from 2013 to 2020. The respective distributions of emission allowances to the Austrian waste sector are estimated for each variant calculated. Allowances vary depending on specific industry, the relative share of free and purchased allowances, and the relative costs entailed in additional purchase. Although the present paper focuses explicitly on the Austrian waste sector, in principle, the calculation procedure is applicable to waste sectors in other developed countries as well.

Keywords

Allocation of Emission Allowances; Distribution of Free/Purchased Allowances; European Union Emissions Trading Scheme; Financial Burden; Waste Sector

Conflicts of Interest

The authors declare no conflicts of interest.

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