Within economic theory, emission trading schemes have long been advocated for their relative simplicity and their allocative and dynamic efficiency. Despite these apparent strengths, regulators have only recently started to meaningfully incorporate emission trading into their toolbox. This chapter focuses on an implementation challenge that does not necessarily present itself as such: litigation. Experiences with the EU ETS have made the potential impact of litigation on ETS development an increasingly salient issue for regulators. Nonetheless, the implications of litigation for the design and functioning of an ETS are less clear than some of the other implementation challenges. This chapter provides an analytical overview of the types of litigation that ETS are exposed to and the ways in which these different categories of litigation can, and have, affect(ed) ETS design and development.
Josephine van Zeben
Local governments play important roles in the lives of European citizens by providing social services and acting as democratic focal points. These roles are increasingly shaped by European laws and policies, for example through the award of Regional Development Funds and the development of EU Urban Agenda. Member States consider the legal form and status of local governments to be part of their exclusive sphere of competence. This chapter investigates how local governments’ dependence on the Member States for their place in Europe jeopardizes the legitimation of governance in the EU by maintaining an artificial division between the national and EU’s spheres of influence. Keywords: Local government, participatory democracy, subsidiarity, legitimacy