@inbook{aa19c7b8c34c47a692c2e62365a25104,
title = "Electricity Production and Greenhouse Gas Emissions Trading",
abstract = "Producing energy by burning fossil fuels leads to the emission of greenhouse gases, such as CO2. These emissions can be reduced in a cost-effective manner by implementing an Emissions Trading Scheme (ETS). An ETS allows legal entities, such as power companies and/or energy-intensive industries, to buy and sell emission rights under an increasingly stringent reduction target. There are three basic design variants of an ETS: cap-and-trade (allowance trading), performance standard rate trading, and project-based credit trading. These variants perform differently in terms of effectiveness and efficiency. The number of ETSs around the world is slowly increasing, with most of Europe, parts of North America, Kazakhstan, China, South Korea and New Zealand now covered. Only a limited number of ETSs have been linked, with some linking taking place within (though not yet between) continents. Emissions trading is an emerging regulatory instrument to efficiently protect the environment, but there remains a long way to go before a global carbon price is realised.",
keywords = "Energy production, fossil fuels, greenhouse gases, climate change, carbon pricing, emissions trading, cap-and-trade, credit trading, carbon market linking, international harmonisation",
author = "Edwin Woerdman and Yingying Zeng",
year = "2021",
month = may,
day = "21",
doi = "10.4337/9781788119689.IX.30",
language = "English",
isbn = "9781788119672",
series = "Elgar Encyclopedia of Environmental Law",
publisher = "Edward Elgar Publishing",
pages = "352--362",
editor = "Roggenkamp, {Martha M.} and {de Graaf}, {Kars J.} and Fleming, {Ruven C.}",
booktitle = "Energy Law, Climate Change and the Environment",
}