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Unformatted text preview: R* = Reduction (abatement) attained at the cap (P*) Analysis: The net reduction (abatement) of tons/yr of CO 2 for Sweden is equal to the available additional abatement available in Germany ("room under the cap"). The actual reduction cost for Sweden is 2,500,000 Euros and the cost of abatement in Germany for the same amount of abatement is 800,000 Euros. This economic condition permits a market to develop between the two countries for the trading of emission rights....
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- Spring '10