Options for Emission Allowance Allocation Under the Eu Emissions Trading Directive.

The article investigates four alternative allocation schemes for emission allowances. The investigated schemes are emission-based allocation, production-based allocation with actor-specific emission factors, production-based allocation with benchmarking and production-based allocation based on data on best available technology (BAT). All the examined schemes apply free allocation based on historical activities. The allocation schemes are evaluated against the criteria for a National Allocation Plan, listed in the Annex III of the EU ETS Directive, and regarding their conformity with the criteria put forward by the Swedish Parliamentary Delegation on Flexible Mechanisms, The FlexMex 2 Commission. [ABSTRACT FROM AUTHOR]