In Jørgen Wettestad and Lars H. Gulbrandsen (eds), The Evolution of Carbon Markets: Design and Diffusion. London, Routledge, 2018, pp. 30-52.
This chapter examines the international frontrunner EU ETS, which is so far the largest carbon market in the world and an important provider of experience in how to design a carbon market. The EU ETS has been assigned a cornerstone position in a more complex EU climate policy mix. However, the system has encountered problems, with a volatile and generally low carbon price. This makes further scrutiny of its design and the main shaping factors especially pertinent.