The impact of the European Emission Trading Scheme on multiple measures of economic performance

Giovanni Marin, Claudia Pellegrin () and Marianna Marino
Additional contact information
Claudia Pellegrin: CEMI-CDM-EPFL, Lausanne, Switzerland.

No 2015, SEEDS Working Papers from SEEDS, Sustainability Environmental Economics and Dynamics Studies

Abstract: The European emission trading scheme (EU ETS) has introduced a price for carbon and has thus led to an additional cost for companies that are regulated by the scheme. There is a growing body of empirical literature that investigates the effects of the EU ETS on firm economic performance. However, the results found to date are mixed. The objective of this paper is to provide empirical evidence on the effect of the EU ETS on economic performance at the firm level. Differently from the previous literature, we test the effect of the EU ETS on a larger set of indicators of economic performance: value added, turnover, employment, investment, labour productivity, total factor productivity and markup. Moreover, we evaluate the extent to which the impact of the EU ETS differs depending on some observable features of firms. Our results, based on a large panel of European firms, provide a comprehensive picture of the economic impact of the EU ETS in its first and second phases of implementation. The evidence suggests that the EU ETS had a positive impact on the scale of treated firms, whereas it had a negative impact on scale-free aspects of economic performance.

Keywords: European Emission Trading Scheme; economic performance; difference-in-differences; emission intensity; allowance trading; environmental patents (search for similar items in EconPapers)
JEL-codes: Q52 Q58 (search for similar items in EconPapers)
Pages: 33 pages
Date: 2015-12, Revised 2015-12
New Economics Papers: this item is included in nep-cse, nep-eff, nep-ene, nep-env and nep-eur
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (15)

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http://www.sustainability-seeds.org/papers/RePec/srt/wpaper/2015.pdf First version, 2015 (application/pdf)
http://www.sustainability-seeds.org/papers/RePec/srt/wpaper/2015.pdf Revised version, 2015 (application/pdf)

Related works:
Journal Article: The Impact of the European Emission Trading Scheme on Multiple Measures of Economic Performance (2018)
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Persistent link: https://EconPapers.repec.org/RePEc:srt:wpaper:2015

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