ENGLISH ABSTRACT: This research report aims to determine whether an emissions trading scheme or carbon tax is the most suitable market-based emissions reduction mechanism for South Africa, given its multiple environmental, social and economic objectives. Key factors considered in this comparison include: environmental effectiveness; economic efficiency; social welfare impacts; public finance considerations; administrative complexity and costs; and, finally, the relationship to global greenhouse gas reduction mechanisms. These factors are compared in the short and long term to determine which mechanism is most likely to deliver South Africa’s emissions reduction targets within the given time frames. The comparison of these factors involves a non-empirical literature review, followed by a rating of the mechanisms in order to distil a best fit in terms of the various aspects of an effective emissions reduction mechanism, taking into account the specific needs and conditions of South Africa. The research found that, in the short term, a carbon tax was best suited to the South African context. This is because of the fiscal certainty inherent in this mechanism, which provides clear price signals and a stable public income. However, the reasons for these comparative advantages over an emissions trading scheme relate to the long lead times and structure of the latter mechanism, which requires years of implementation and favours environmental effectiveness over economic efficiency. Further reasons include a lack of understanding and buy-in in terms of market-based mechanisms, a situation that favours familiarity over effectiveness in some instances. Taking these issues into account, the research shows that an emissions trading scheme is better suited to the South African context in the long term. Once properly implemented, this mechanism provides superior results in terms of the above-mentioned factors, and specifically in terms of environmental effectiveness and the potential for benefit through international integration. This research report concludes that the South African government has failed to take a long-term view of the mechanisms available for emissions reduction, choosing instead to implement a carbon tax, which favours economic growth at the expense of the environment and future generations. A general lack of understanding of the structures and opportunity costs of the two mechanisms necessitates an investigation by government of the applicability and structure of an emissions trading scheme in the South African context before market-based mechanisms can play an effective part in the future development of the country’s environmental regulatory regime.

The Emission Trading Scheme for green house gases is a key tool of European climate protection. Including the road transport sector might be a promising strategy to limit its CO2 emissions. This could be realized within a common market (trans-sectoral trading permitted) or separated markets (trans-sectoral trading not permitted). Starting from different assumptions on emission reduction objectives, the impact of both options is analyzed using a quantitative model. Although an emission trading scheme is ecologically effective regardless of the trading model, it turns out that CO2 emissions and emission allowance prices differ strongly between both design options due to sector specific price elasticities of allowance demand. (authors' abstract)

The purpose of this study is to examine the accounting standard-setting process in relation to emissions rights and related liabilities in the Korean context in order to provide a better understanding of accounting issues under an emissions trading scheme (ETS). Using an interpretive inductive approach, this study comprises semi-structured, face-to-face interviews and analysis of relevant documents. Interviews were carried out with a wide range of key players, including accounting standard setters (Korean Accounting Standards Board, International Accounting Standards Board, and Autorité des Normes Comptables), accounting experts, industry and government. This study identifies how problematic accounting issues on emissions rights and related liabilities have been addressed by accounting standard setters. The key accounting issues under ETS are linked mainly with free allowances. It is found that accounting standard setters attempt to establish the most appropriate accounting standard under the given circumstances reflecting a variety of considerations, and that the most common elements affecting the development of accounting standards for ETS are the legal and economic context, the existing accounting framework, and preceding models and practices. Nevertheless, these factors affect the development of accounting standards for ETS in different ways. Accordingly, the primary accounting issues on which each standard setter concentrates vary depending on different circumstances and considerations. This study investigates the accounting standard-setting process for emissions rights by Korean accounting standard setters, from the agenda-setting stage to the final publication of the standard. The findings reinforce the importance of political factors in the standard-setting process, including stakeholders’ participation in the process, prominent stakeholders, and the motivation, methods and timing of lobbying activities. In particular, the findings have important implications for the effectiveness of lobbying. Overall, the findings confirm that accounting standards are likely to be the political outcome of interactions between the accounting standard setter and stakeholders. The findings highlight desirable factors for accounting models of emissions rights. Desirability or appropriateness of standard is judged by the extent to which stakeholders in institutional environments consider the promulgation to be legitimate or authoritative. Therefore, accounting standard setters must make greater efforts to encourage stakeholders to participate in the standard-setting process in order to ensure institutional legitimacy. The originality of this study lies in its empirical research on accounting issues for ETS from a practical point of view. In particular, in its timely and detailed investigation of Korean accounting standard setters, this study provides a broader understanding of the accounting standard-setting process in the Korean context. The study also advances legitimacy theory by offering a framework particularly applicable to accounting standard setting process, which also incorporates stakeholder theory research. The study finds support from the framework and further contributes to the related literature by reviewing legitimacy conflicts. From an accounting policy point of view, the findings have implications for both national and international standard setters and provide guidance on how to achieve high-quality accounting standards with a high degree of compliance.

<p>Den 1 januari 2005, startades det europeiska handelssystemet med utsläppsrätter. Handelssystemet avser att minska</p><p>koldioxidutsläppen inom Europa, för att fullfölja åtagandet i Kyotoprotokollet. I Sverige har flera sektorer påverkats</p><p>av handeln med utsläppsrätter bl.a. energisektorn, som står i fokus för denna studie.</p><p>Syftet med uppsatsen är att studera hur de större och mindre energibolagen samt de ansvariga myndigheterna i</p><p>Sverige uppfattar systemet för handel med utsläppsrätter. För att uppfylla syftet formulerades ett antal</p><p>frågeställningar om hur energibolagen och myndigheterna ser på handelssystemets följande områden, fördelar och</p><p>nackdelar, implementering, tilldelningsprinciper, förbättringspotential, framtida utveckling, samt om det finns några</p><p>likheter och skillnader mellan energibolagen. Detta gjordes genom intervjuer med representanter från ett urval av</p><p>svenska energibolag och ansvariga myndigheter. Resultatet av intervjuerna analyserades och jämfördes med tidigare</p><p>studier. Därefter diskuterades frågeställningarna.</p><p>Slutsatserna visar att handelssystemet anses vara ett kostnadseffektivt styrmedel. Vidare visar slutsatserna att vid</p><p>implementeringen var tidspressen det största problemet för både energibolagen och myndigheterna. Vad gäller</p><p>tilldelningsprinciper föredrar energibolagen tilldelning baserad på riktmärken, detta bl.a. då de ser problem med</p><p>uppdatering av de historiska utsläppen. När det gäller handelssystemets förbättringspotential önskar energibolagen</p><p>främst större harmonisering, längre perioder samt en förenkling av reglerna och kraven. Både energibolagen och</p><p>myndigheterna framhåller att handelssystemets framtid är väldigt osäker och att det beror mycket på vilka</p><p>internationella beslut som fattas. En skillnad som har kunnat urskiljas mellan de större och mindre energibolagen är</p><p>att de större tänker globalt på klimatproblematiken och miljön, i jämförelse med de mindre energibolagen, vars fokus</p><p>ligger på den inhemska marknaden.</p>

Den 1 januari 2005, startades det europeiska handelssystemet med utsläppsrätter. Handelssystemet avser att minska koldioxidutsläppen inom Europa, för att fullfölja åtagandet i Kyotoprotokollet. I Sverige har flera sektorer påverkats av handeln med utsläppsrätter bl.a. energisektorn, som står i fokus för denna studie. Syftet med uppsatsen är att studera hur de större och mindre energibolagen samt de ansvariga myndigheterna i Sverige uppfattar systemet för handel med utsläppsrätter. För att uppfylla syftet formulerades ett antal frågeställningar om hur energibolagen och myndigheterna ser på handelssystemets följande områden, fördelar och nackdelar, implementering, tilldelningsprinciper, förbättringspotential, framtida utveckling, samt om det finns några likheter och skillnader mellan energibolagen. Detta gjordes genom intervjuer med representanter från ett urval av svenska energibolag och ansvariga myndigheter. Resultatet av intervjuerna analyserades och jämfördes med tidigare studier. Därefter diskuterades frågeställningarna. Slutsatserna visar att handelssystemet anses vara ett kostnadseffektivt styrmedel. Vidare visar slutsatserna att vid implementeringen var tidspressen det största problemet för både energibolagen och myndigheterna. Vad gäller tilldelningsprinciper föredrar energibolagen tilldelning baserad på riktmärken, detta bl.a. då de ser problem med uppdatering av de historiska utsläppen. När det gäller handelssystemets förbättringspotential önskar energibolagen främst större harmonisering, längre perioder samt en förenkling av reglerna och kraven. Både energibolagen och myndigheterna framhåller att handelssystemets framtid är väldigt osäker och att det beror mycket på vilka internationella beslut som fattas. En skillnad som har kunnat urskiljas mellan de större och mindre energibolagen är att de större tänker globalt på klimatproblematiken och miljön, i jämförelse med de mindre energibolagen, vars fokus ligger på den inhemska marknaden.

Agricultural greenhouse gas emissions within New Zealand account for 48 percent of all national greenhouse gas emissions. With the introduction of the emissions trading scheme farmers will soon be liable for their emissions, introducing additional physical constraints and financial costs. Farmers that still operate within the sector will have two options to meet emissions targets; to purchase carbon credits from the open market, or mitigate farm level emissions at added costs to the farmer. This study examines the latter case of assessing farm level options for mitigating greenhouse gas emissions, and quantifying the physical and financial costs associated with mitigation strategies. Results show that, based on the assumptions in the study, there are available options for dairy farmers to profitably meet Kyoto protocol emissions targets. Sheep and beef farmers can increase profit, but cannot meet Kyoto protocol emissions targets, through examined scenarios.

The estimation of afforestation reservation prices for small landowners in New Zealand has not been the subject of much research despite its importance in predicting future land use. Reservation prices for planting represent the minimum payment a landowner must receive before converting land from agriculture to forest. A survey of 728 landowners from every region of New Zealand who own between 20 and 200 hectares of forest as well as other unplanted land used for agriculture were surveyed about forestland, forest land owner demographics, ownership objectives, silviculture and reservation prices. In this study, reservation price strategies were investigated by offering hypothetical annual and one-time payments for converting land from agriculture to forestry. From this survey, the average one-time payment a landowner would be willing to accept to convert a hectare of land from agriculture to forestry was $3,554 and the average annual payment to convert a hectare of land was $360. The key factors influencing the reservation price were; whether or not the landowner lived on the property, if one of the ownership objectives was income from carbon, the primary agricultural enterprise and total household income. An implied discount rate was calculated for each landowner and excluding those who would not accept any payment the average after-tax discount rate was 9.7%. Small landowners indicated that their primary reason for owning plantation forest was income from timber with very few landowners using their forest land for recreation. The median farm size was 400 hectares and the median forest plantation was 37 hectares. Planting of radiata pine peaked in 1994 and 1995 with more radiata pine planted in 1994 than in all the years from 2000-2009. Most landowners are performing some type of silviculture in their forests. Ninety percent of landowners are pruning in the current rotation while only 61% plan to prune in the future. Only 26% of landowners have engaged in any commercial harvesting in the past ten years but as their current rotation matures 71% plan to replant on the same site. A majority of respondents thought the situation for forest landowners was getting better. Understanding the reservation price strategies of landowners is important for predicting future land use patterns and recognizing how close landowners are to converting land. The ownership objectives of landowners and the replanting decisions they make are critical for future timber supply. The results of this study can assist in the development of forest establishment incentive programmes. Better information about landowner characteristics will result in enhanced decision-making for the timber industry and the government in New Zealand.

Ce mémoire décrit et analyse différents types de systèmes d'échange de droits d'émission utilisés dans le cadre de politiques de gestion de la pollution atmosphérique. L'objectif premier est de répertorier des enjeux juridiques étant liés à l'efficacité de ces systèmes. Dans un premier temps, nous nous attardons à la structure et aux mécanismes internes des systèmes d'échange de droits d'émission. Tout d'abord, nous soulignons le fondement théorique de ce type de système. Nous évaluons par la suite la structure et certains litiges liés au système d'échange américain dans le cadre des émissions de dioxyde de soufre. Dans un deuxième temps, nous continuons la description de systèmes en nous attardant plus spécifiquement aux interactions entre les systèmes d'échange de droits d'émission et les autres politiques et règlementations environnementales (incluant d'autres systèmes d'échange d'émission) visant la même problématique environnementale. / The present essay describes and analyses different types of emissions trading schemes as an instrument in air quality and environmental policy. The objective is to index legal stakes or risks relating to the efficiency of emissions trading schemes. ln the first part, we evaluate the structure and the design of emissions trading schemes. The knowledge of the economic theory transcending those schemes is necessary to understand ail the structural mechanisms. After this evaluation, this essay proposes an analysis of the U.S. sulphur dioxide program based on the U.S. Clean Air Act and sorne of the litigations that occurred in the application of the said program. ln part two, we are describing the structure and the design of emissions trading schemes with the specific goal of underlining the interactions between different types of environmental policies or regulations and emissions trading schemes when they are ail used for the same environmental problem.

Ce mémoire décrit et analyse différents types de systèmes d'échange de droits d'émission utilisés dans le cadre de politiques de gestion de la pollution atmosphérique. L'objectif premier est de répertorier des enjeux juridiques étant liés à l'efficacité de ces systèmes. Dans un premier temps, nous nous attardons à la structure et aux mécanismes internes des systèmes d'échange de droits d'émission. Tout d'abord, nous soulignons le fondement théorique de ce type de système. Nous évaluons par la suite la structure et certains litiges liés au système d'échange américain dans le cadre des émissions de dioxyde de soufre. Dans un deuxième temps, nous continuons la description de systèmes en nous attardant plus spécifiquement aux interactions entre les systèmes d'échange de droits d'émission et les autres politiques et règlementations environnementales (incluant d'autres systèmes d'échange d'émission) visant la même problématique environnementale. / The present essay describes and analyses different types of emissions trading schemes as an instrument in air quality and environmental policy. The objective is to index legal stakes or risks relating to the efficiency of emissions trading schemes. ln the first part, we evaluate the structure and the design of emissions trading schemes. The knowledge of the economic theory transcending those schemes is necessary to understand ail the structural mechanisms. After this evaluation, this essay proposes an analysis of the U.S. sulphur dioxide program based on the U.S. Clean Air Act and sorne of the litigations that occurred in the application of the said program. ln part two, we are describing the structure and the design of emissions trading schemes with the specific goal of underlining the interactions between different types of environmental policies or regulations and emissions trading schemes when they are ail used for the same environmental problem. / "Mémoire présenté à la Faculté des études supérieures en vue de l'obtention du grade de Maîtrise en droit (LL.M.) option recherche". Ce mémoire a été accepté à l'unanimité et classé parmi les 15% des mémoires de la discipline. Commentaires du jury ; "Le jury souligne la difficulté du sujet et l'importance des enjeux économiques, politiques et juridiques. Le candidat a bien déblayé le sujet et a su structurer son analyse de manière intéressante".

The goal of this diploma thesis was to create a comprehensive overview of the recent devel-opment in the fight against the climate change in European Union and complement it with evidence on how the CO2 reduction measures impacted the energy industry. Firstly, the ener-gy industry of the European Union is introduced with its basic characteristics. Information on the climate change and on actions that have been established so far in order to fight the cli-mate change is also provided. Next, the theoretical knowledge from the environmental eco-nomics is presented together with the various concepts on how to address the issues connected with the externalities. EU ETS and renewable energy subsidies (FiTs) are further analyzed and practical insights on how the measures work are also offered. The practical part contributes with analyses of case studies of Germany and Czech Republic, in which the key success factors of the policies and their impact are assessed.