Comment

New EU ETS Phase 4 rules temporarily puncture waterbed

The new rules of the EU ETS will fundamentally change its character. The long-term cap on emissions will become a function of past and future market outcomes, temporarily puncturing the waterbed and having retroactive impacts on GHG abatement from overlapping policies.

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Acknowledgements

I thank J. Jarke, S. Petrick and M. Willner for helpful comments.

Author information

Affiliations

  1. Department of Socioeconomics, University of Hamburg, Hamburg, Germany

    • Grischa Perino

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Competing interests

The author declares no competing interests.

Corresponding author

Correspondence to Grischa Perino.