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2015) for an evaluation of the implications of back-loading on carbon costs that compares the CO2 equilibrium price with and without this coverage measure. See Kollenberg and Taschini (2016) for a theoretical model that investigates the potential penalties of the market stability reserve mechanism utilizing a stochastic partial equilibrium framework. 2004), Betz and Sato (2006) for an in-depth dialogue of the totally different design of the NAPs throughout MS in the preliminary part and of their penalties in terms of firms’ competitiveness. As argued on this paper, these followers share with the EU ETS some widespread flaws, particularly in terms of worth volatility, however they’ve additionally proven the capability to innovate and possibly devise alternative ways to manage their own ETS regimes, which may in the long run jeopardize the EU leadership in the ETS context. To make an example, the fraudster might buy allowances from agency A located in another EU nation and then promote them in its personal country to agency B charging the VAT. By VAT fraud, we check with the apply of some brokers of importing allowances VAT-free (due to the zero charge of taxation on intra-community cross-border commerce) and sell them within the importing nation with VAT charged and afterwards disappear as an alternative of paying the VAT to the government

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