Evaluating Links between Emissions Trading Schemes: An Analytical Framework.

Emission trading systems (ETS) have been or will be implemented in more and more states and regions around the world. The objectives of such trading systems, however, can only be reached to full extend if a worldwide ETS comes into effect. Therefore, ETS are forced to join. Against that backdrop, linking of two or more ETS can be an important step towards a global ETS. This article examines whether differences between existing and planned ETS are obstacles for successful linking; to that end, it provides an analytical framework for discussion. It starts with an overview of the development of different ETS (I.), presents evaluation criteria for the assessment of linkages (II.), describes possible types of links (III.), categorises the basic decisions regarding the substantive requirements and scope of application of an ETS (IV.), and examines how different ETS designs affect the chances of a link (V.). [ABSTRACT FROM AUTHOR]