CO₂ quota price and carbon tax: some guidance elements. Les Cahiers du PREC nr 1, January 2010

After an assessment of the operation of the European Emission trading scheme (ETS) in terms of transactions and prices, this article shows how the whole arrangement has been evolving since its implementation in 2005 and 2007, and recalls the implications of a passage to auctions which is foreseen for the third phase (2013-2020). Then, the authors review options chosen by different countries which succeeded in achieving a coexistence between a national carbon tax and the ETS. Finally, the authors discuss, beyond the French situation, the most promising ways for an extension of carbon tariffing in Europe.