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Searching for Ethical Issues Related to EU ETS System

Publication at Central Library of Charles University, First Faculty of Medicine |
2019

Abstract

With theme EU ETS, far beyond the economic and environmental spheres, social and ethical specificities are linked. In addressing the problem of reducing greenhouse gas production, we encounter the problem of negative externalities, which in this case is associated with ethical issues of greenhouse gas emissions by issuers, towards residents who suffer from the negative effects of this externality.

Another aim is to consider the possibility and the way of payments to the owners of the forest and the land for non-production function. This work attempts to identify this problem more closely.

As a result, a more equitable distribution of the income flowing from the emission allowance market among residents, for example in the form of a public good, is proposed. This redistribution of income can remove social injustice and mitigate the effects of negative externalities.

Indirect payments in the form of subsidies to a public good would eliminate the problem of fair calculation and distribution of direct payments.