Emissions trading and WTO law

Holzer, Kateryna (2016). Emissions trading and WTO law. In: Weishaar, Stefan E. (ed.) Research Handbook on Emissions Trading. Research handbooks in climate law (pp. 326-352). Cheltenham, UK; Northampton, MA, USA: Edward Elgar

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This chapter analyzes various design features of emissions trading schemes and possible flanking support mechanisms in terms of their compliance with WTO law. It looks into the legal status of an emissions allowance
so as to clarify the applicability of WTO rules to ETSs. It discusses legal implications of such ETS design features as free allocation
of emissions allowances, revenue recycling, as well as border tax adjustments, including import taxes and cost rebates for emissions allowances for domestic producers on exportation. Finally, it reviews emissions trading
between countries, taking linking of ETSs and flexibility mechanisms
under the Kyoto Protocol into account.

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