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In page European Union Emission Trading Scheme:

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This criticism has face validity. In future phases, measures such as banking of allowances and price floors may be used to mitigate volatility.[2] However, it's important to note that considerable volatility is expected of this type of market, and the volatility seen is quite in line with that of energy commodities generally. Nonetheless, producers and consumers in those markets respond rationally and effectively to price signals.[1]