In its recent report the High Level Reflection Group of the Energy Community has advised the Community to study the possibilities to incorporate Emissions Trading into the Energy Community Treaty. In this context Stefan Weishaar was invited on 15. October 2014 by the Energy Community Secretariat in Vienna to speak before its Environmental task force and respond to ensuing questions.
He presented his research on energy market integration and its negative effects for carbon leakage in the electricity sector under the European Emissions Trading System and outlined the policy conflicts. Stefan Weishaar also warned that because there are currently no regulatory answers under the European Climate Policy to carbon leakage in the electricity sector, welfare-reducing inefficiencies (stranded costs) will arise if legislators seek to prevent carbon leakage after electricity sector investments have taken place.
This article was published by the Faculty of Law.
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