Since the earliest days of environmental policy there has been an ongoing and robust debate over the roles of pollution pricing on the one hand, and direct regulatory and governmental programs on the other hand, as tools to reduce pollution levels equitably and efficiently. Today, as European decision-makers simultaneously negotiate the rules for the 4th Phase of...

The EU Commission's market design communication focuses primarily on the question of whether and how to intervene in support of investment in needed capacity. However, this issue must be addressed within the context of meeting climate and energy targets for 2030, which will require an increase in the share of low-carbon resources, including a large increase in pr...