The auctioning of emission allowances in Poland and their economic implications

Power Line

This study investigates the various options that exist for using emission allowances, primarily its potential in terms of social, economic, energy and climate policy. For example, revenues generated through the sale of emission allowances can be used to lighten the burden on energy consumers, particularly the socially disadvantaged. Direct financial compensation is also a possibility in the form of tax relief. These potentials can be developed by using the revenue from auctions so to finance building refurbishment programmes, restructure energy provisions for large public housing developments with district heating systems and offer tax incentives for restructuring energy systems.

Poland, in particular, has considerable room for improvement in the area of energy efficiency. By stimulating greater energy efficiency in Polish households, cost and climate protection issues can be equally addressed by promoting the use of energy-efficient domestic appliances or co-financing their purchase. It would also have a positive impact on Polish energy security by potentially limiting the country's dependency on foreign energy imports.