Analysis of the market mechanisms of regulating greenhouse gas emissions in the world and their consideration in existing models for the forecasting of power industry development

Lebid M.V.
Institute of General Energy of the National Academy of Sciences of Ukraine, 172 Antonovycha str., Kyiv, 03150, Ukraine
Language: Ukrainian
Source: Problemy zahal`noi enerhetyky - The Problems of General Energy, 2018, 1(52):51-58
Section: Systemic studies and complex problems of the energy sector
UDC: 504: 620.9
Received: 14.03.2018
Abstract: This article provides an overview of the system of trading quotas for greenhouse gas emissions. The current experience shows that, under conditions of a well-implemented system, emission trading can be an efficient, reliable, and transparent instrument for achieving cost-effective reductions of greenhouse gas emissions. At the same time, the mobilization of representatives of the private sector is attained, investments are attracted, and the intensification of international cooperation is activated. The largest of these systems works in the European Union since 2005. The agreement on association between Ukraine and EU in the field of environmental security and sustainable development envisions the introduction of a similar system in Ukraine. The article provides an overview of the models used for forecasting the development of power industry, including emission prices. The author relies on the conceptual analysis and some of the most practical lessons learned during the implementation of greenhouse-emission trading system in the European Union and around the world.
Keywords: trade, quotas, market mechanisms, greenhouse gas price, forecasting models.
1. Natsionalnyi kadastr antropohennykh vykydiv iz dzherel ta absorbtsii pohlynachamy parnykovykh haziv 1990-2016 rr. URL: [in Ukrainian].
2. Emissions Trading in Practice: a Handbook on Design and Implementation (Torhivlia vykydamy na praktytsi: posibnyk z planuvannia ta vprovadzhennia). World Bank/PMR, ICAP.- 2016 р.
3. Carbon Market Monitor (Monitorynh vuhletsevoho rynku). – sichen 2017 r.
4. Ezhekvartal'nyj bjulleten' ICAP - Novosti ob osnovnyh tendencijah torgovli kvotami na vybrosy parnikovyh gazov, nomer 11. – 28.09.2016r. URL: [in Russian].
5. European Parliament (2003) Art. 1, Directive EC/87/2003
6. Dyrektyva yevropeiskoho parlamentu ta rady 2009/29/IeS, URL: [in Ukrainian].
7. The EU Emissions Trading System (EU ETS), European Union, 2016 URL:
8. European Commission (2014): Climate Action-Policies-Auctioning
9. European Union Transaction Log (EUTL) URL:
10. Sandbag, the Brussels and London-based non-profit organisation, offers an in-depth discussion of recent developments in (UK) power-sector emissions. URL:
11. DODATOK XXX do Hlavy 6 «Navkolyshnie pryrodne seredovyshche» Rozdilu V «Ekonomichne i haluzeve spivrobitnytstvo». URL: [in Ukrainian].
12. Sistema torgovli kvotami na vybrosy parnikovyh gazov: pochemu jeto vygodno dlja biznesa? URL: [in Russian].
13. Hedenus, F., Johanssonm, D., & Lindgren, K. (2012). A critical assessment of energy-economy-climate models.
14. Orvika Rosnes, Anne-Franziska Sinner, Berit Tennbakk. Handbook of CO? in Power Systems, 2012