Is the European Union Emissions Trading Scheme (EU ETS) the best tool to combat climate change?
Kebede, Tsegaw (2015)
Metropolia Ammattikorkeakoulu
2015
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Julkaisun pysyvä osoite on
https://urn.fi/URN:NBN:fi:amk-201505249833
https://urn.fi/URN:NBN:fi:amk-201505249833
Tiivistelmä
ABSTRACT
Helsinki Metropolia University of Applied Sciences
Degree program: Bachelor of Business Administration: International Business and Logistics
Dissertation title: Is the European Union Emissions Trading Scheme (EU ETS) the best tool to combat climate change?
Author: Tsegaw Kebede
The objective and purpose of this research is to discuss and answer whether European Union Emissions Trading Scheme (EU ETS) is the best tool to combat climate change and reduce industrial greenhouse gas emissions. The research is also intended to identify why was the EU ETS chosen amongst other tools/options to combat climate change. Different components that make up the EU ETS were examined to understand and get a clear idea of how the system works and if it is functioning as intended. Currently, global warming being an issue requiring immediate action, governments are in urgent need to find the best tool to reduce greenhouse gas emissions. Does the urgency to find the best tool bias judgment over the choice of the right tool, or is any tool the best tool as long as it favors free market capitalism? Did other options to combat climate change like carbon tax, shifting to low-carbon technologies, use of renewable energy sources or total abandonment of the use of fossil-fuel energy have been considered before the ETS was fabricated?
Methodology: Critical review of diverse relevant data has been carried out both from the proponents of the EU ETS and that of authors and non-governmental organization who are against the EU ETS. Ideas and literatures from both sides have been critically and objectively analyzed to be able to answer the research question satisfactorily.
Findings: The research concluded that the EU ETS is not the best tool to combat climate change considering other better and working alternative tools are available to implement. The EU ETS has many flaws and weaknesses that cannot be corrected using reformation.
Research limitations: The fact that there were not efficient ways to measure (satisfactory data to be able to confidently say that emissions have been reduced) emissions and their reduction results in marginal errors.
Key words: climate change, EU ETS, Emissions trading, cap and trade, Offset, greenhouse gases, emission reduction, low-carbon technologies
Helsinki Metropolia University of Applied Sciences
Degree program: Bachelor of Business Administration: International Business and Logistics
Dissertation title: Is the European Union Emissions Trading Scheme (EU ETS) the best tool to combat climate change?
Author: Tsegaw Kebede
The objective and purpose of this research is to discuss and answer whether European Union Emissions Trading Scheme (EU ETS) is the best tool to combat climate change and reduce industrial greenhouse gas emissions. The research is also intended to identify why was the EU ETS chosen amongst other tools/options to combat climate change. Different components that make up the EU ETS were examined to understand and get a clear idea of how the system works and if it is functioning as intended. Currently, global warming being an issue requiring immediate action, governments are in urgent need to find the best tool to reduce greenhouse gas emissions. Does the urgency to find the best tool bias judgment over the choice of the right tool, or is any tool the best tool as long as it favors free market capitalism? Did other options to combat climate change like carbon tax, shifting to low-carbon technologies, use of renewable energy sources or total abandonment of the use of fossil-fuel energy have been considered before the ETS was fabricated?
Methodology: Critical review of diverse relevant data has been carried out both from the proponents of the EU ETS and that of authors and non-governmental organization who are against the EU ETS. Ideas and literatures from both sides have been critically and objectively analyzed to be able to answer the research question satisfactorily.
Findings: The research concluded that the EU ETS is not the best tool to combat climate change considering other better and working alternative tools are available to implement. The EU ETS has many flaws and weaknesses that cannot be corrected using reformation.
Research limitations: The fact that there were not efficient ways to measure (satisfactory data to be able to confidently say that emissions have been reduced) emissions and their reduction results in marginal errors.
Key words: climate change, EU ETS, Emissions trading, cap and trade, Offset, greenhouse gases, emission reduction, low-carbon technologies