@article{Kruger:10679,
      recid = {10679},
      author = {Kruger, Joseph and Pizer, William A.},
      title = {The EU Emissions Trading Directive: Opportunities and  Potential Pitfalls},
      address = {2004},
      number = {1318-2016-103076},
      series = {Discussion Paper 04-24},
      pages = {62},
      year = {2004},
      abstract = {The European Union is on the verge of establishing an  emissions trading program ten times the size of the Acid  Rain trading program in the United States. Its design takes  advantage of many lessons from existing experience with  trading programs, as well as economic theory, and innovates  in important ways. While we view this as an impressive  development, concerns about equity, enforcement, and  efficiency remain. Specifically, a lack of data and weaker  environmental institutions in some EU Member States raises  questions about both allowance allocations and compliance  and enforcement. Although much attention has focused on  whether prices will be "too low" in the first phase of the  program, a greater risk is that uncertainty about program  elements, technology and behavioral response, and external  events could create volatile markets and costly compliance  in the second phase. Regardless of outcome, the EU trading  system will be influential in future international efforts  to reduce greenhouse gases.},
      url = {http://ageconsearch.umn.edu/record/10679},
      doi = {https://doi.org/10.22004/ag.econ.10679},
}