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The unintended consequences of the EU ETS cancellation policy

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Figure

Figure 1. Cumulative CO2ratio between future and present marginal abatement costs (MAC) for a wide range of parameter settings of the MACcurve
Figure 2 summarizes the results of our numerical analysis. Although the ratio of future and currentMAC remains the most important determinant of the cumulative emissions and the year in whichshould have an effectiveness of -1
Figure 3. Marginal abatement cost curves for the year 2018 for MAC curvatures (γof increasing baseline emissions (“indicate the cases without technological learning and growth of baseline emissions
Figure 4. Cumulative CO emissions, cancellation volumes and the year in which the waterbed is sealed (i.e., the yearemissions lead to lower emissions, higher cancellation volumes and a TNAC that stays longer above 833 MtCObelow the vertical markers)

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