Estimating the Effect of an EU-ETS Type Scheme in Australia Using a Synthetic Treatment Approach

Heather Anderson, Jiti Gao, Guido Turnip (), Farshid Vahid and Wei Wei ()

No 12/22, Monash Econometrics and Business Statistics Working Papers from Monash University, Department of Econometrics and Business Statistics

Abstract: The 2011 Clean Energy Act sought to align Australia's carbon pricing to the 2005 European Union Emission Trading Scheme (EU-ETS) by 2015, but this act was repealed in 2014. We estimate the hypothetical impact of Australia adopting an emissions trading policy in 2005, which corresponds with the establishment of the EU-ETS. We use a synthetic treatment approach that constructs a counterfactual measure of Australian carbon emissions that makes use of the time series properties of pre-2005 and post-2005 emissions in European countries. We find that Australian per-capita carbon emissions would have been lower by about 4.5% as a result of the policy -- a result that is robust to several variations of our methodology.

Keywords: Carbon emissions; climate change; common trends; mitigation policy; synthetic treatment (search for similar items in EconPapers)
JEL-codes: C32 H23 Q53 Q58 (search for similar items in EconPapers)
Pages: 32
Date: 2022
New Economics Papers: this item is included in nep-ene and nep-env
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://www.monash.edu/business/ebs/research/publications/ebs/wp12-2022.pdf (application/pdf)

Related works:
Journal Article: Estimating the effect of an EU-ETS type scheme in Australia using a synthetic treatment approach (2023)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:msh:ebswps:2022-12

Ordering information: This working paper can be ordered from
http://business.mona ... -business-statistics

Access Statistics for this paper

More papers in Monash Econometrics and Business Statistics Working Papers from Monash University, Department of Econometrics and Business Statistics PO Box 11E, Monash University, Victoria 3800, Australia. Contact information at EDIRC.
Bibliographic data for series maintained by Professor Xibin Zhang ().