Environmental Engineering Reference
In-Depth Information
Narain, U., & Veld, K. V. (2008). The clean devel-
opment mechanism's low-hanging fruit problem:
When might it arise, and how might it be solved?
Environmental and Resource Economics
,
40
(3),
445-465. doi:10.1007/s10640-007-9164-x
CER:
Certified Emissions Reduction, valid
under the Kyoto Protocol Clean Development
Mechanism, which has been validated by the CDM
Executive Board of the United Nations Framework
Convention on Climate Change.
Trotignon, R., & Leguet, B. (2009).
How many
CERs by 2013?
(Mission Climat Working Paper
#2009-05).
ENDNOTES
1
The author is Member of the Centre de
Géopolitique de l'Energie et des Matières
Premières (CGEMP) and the Laboratoire
d'Economie de Dauphine (LEDa). He is
also Visiting Researcher with EconomiX-
CNRS and the Grantham Institute for Cli-
mate Change at Imperial College London.
Address
: Place du Maréchal de Lattre de
Tassigny, 75775 Paris Cedex 16, France.
Email
: julien.chevallier@dauphine.fr
Wang, H., & Firestone, J. (2010). The analysis
of country-to-country CDM permit trading us-
ing the gravity model in international trade.
En-
ergy for Sustainable Development
,
14
(1), 6-13.
doi:10.1016/j.esd.2009.12.003
World Bank. (2008).
State and trends of the car-
bon market 2008
. Washington, DC: World Bank
Institute.
2
See http://ec.europa.eu/environment/climat/
emission/linking_en.htm
ADDITIONAL READING
3
Note that CERs traded on exchanges are
precisely guaranteed secondary CERs (sC-
ERs), but for simplicity we use the common
denomination term of CERs throughout the
chapter.
Ellerman, A. D., Convery, F. J., & De Perthuis,
C. (2010).
Pricing Carbon: The European Union
Emissions Trading Scheme
. Cambridge Univer-
sity Press.
4
See
http:\\
www.cdmpipeline.org
5
To conserve space, we do not comment here
on the concept of “programmatic” CDM,
which has been developed for small-scale
projects.
KEY TERMS AND DEFINITIONS
EUA:
European Union Allowance exchanged
under the European Union Emissions Trading
Scheme, which is equal to one tonne of CO
2
-
equivalent emitted in the atmosphere.
EU ETS:
European Union Emissions Trad-
ing Scheme, which is a cap-and-trade program
for greenhouse gases emissions developed in the
EU 27.
CDM:
Clean Development Mechanism, valid
under the Kyoto Protocol, which allows to cut
emissions in developing countries and to import
validated credits within other emissions trading
schemes.
6
The data in Figure 1 reveals a sharp break in
EUA price series during the 2005 compliance
event. By the end of April 2006, this price
correction of 54% within four days followed
the announcement by the EC that CO
2
emis-
sions were approximately 3% lower than
the allocated allowances during the 2005
compliance period (Alberola
et al.
, 2008).
7
See http://ec.europa.eu/environment/climat/
emission/ets_post2012_en.htm
8
See http://ec.europa.eu/environment/climat/
emission/citl_en.htm
