End-User Emissions Trading: What, Why, How and When?

Abstract

End-User Emissions Trading (EET) refers to an emissions trading scheme for individuals, for instance on an EU-wide scale. Such a personal carbon trading scheme is targeted towards (a) reducing the release of greenhouse gases from energy and fuel consumption and (b) towards incentivizing climate-friendly choices related to consumption, production and utilization of resources. The central question in this paper is three-fold: Why would such an emissions trading scheme for individuals be desirable, how could such a scheme be designed and under what conditions could it be acceptable?