Paying the Carbon Price

Elena de Lemos Pinto Aydos, Senior Lecturer, Newcastle Law School, University of Newcastle, Australia

'The Paris Agreement on climate change has made it clear that the attention of scholars and practitioners has to shift to the functioning and interaction of diverse climate policies. This excellent book addresses a stubborn issue that is critical for success: carbon leakage. The author very ably presents the theory and practice of carbon leakage for several climate policies while paying due attention to the legal realm, in particular WTO. This book is a must-have for both researchers and practitioners alike.'--Stefan Weishaar, Groningen University, the Netherlands'Dr. Elena de Lemos Pinto Aydos' comprehensive account of past and present emissions trading schemes suggests that free licenses to pollute in reality is a subsidy conferring windfall profits to a small number of energy-intensive companies. Her elaborate legal analysis convincingly shows that under the rules of the World Trade Organization carbon emission trading benefits will be deemed actionable and thus should require advance notification, as countervailing duties could be justified. With trade protectionism concerns looming in the background this is an extremely timely book to inform carbon market observers and policy makers.'--Mikael Skou Andersen, Aarhus University, Denmark'This book is an important contribution to understanding the relation between the oftentimes overestimated phenomenon of carbon leakage and the resulting, frequently unjustified, free allocation to heavy polluters. The volume excels in applying an interdisciplinary law-and-economics approach in a comprehensive analysis of three major carbon markets. It is a timely addition to the literature with obvious relevance beyond the cases; a "must read" for all scholars and practitioners interested in an efficient, effective, and fair climate policy.'--Sven Rudolph, Kyoto University, Japan

• Contents: 1. Contextualising the Issue 2. Carbon Leakage and Industry Assistance 3. Real World Emissions Trading Schemes: Challenges and Lessons Learnt 4. Reconsidering the Eligibility Thresholds for the Free Allocation of Permits 5. Free Allocation and Linking Emissions Trading Schemes: The Case for Harmonisation 6. The Free Allocation of Permits and The WTO Discipline of Subsidies 7. Summary of the Main Findings Bibliography Index