The Effectiveness of the EU ETS Policy in Changing the Energy Mix in Selected European Countries

Małgorzata Błażejowska, Anna Czarny, Iwona Kowalska (), Andrzej Michalczewski and Paweł Stępień
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Małgorzata Błażejowska: Faculty of Economic Sciences, Koszalin University of Technology, 75-343 Koszalin, Poland
Anna Czarny: Faculty of Economics, West Pomeranian University of Technology, 71-270 Szczecin, Poland
Iwona Kowalska: Institute of Economics and Finance, Warsaw University of Life Sciences—SGGW, 02-787 Warsaw, Poland
Andrzej Michalczewski: Doctoral School, University of Szczecin, 70-384 Szczecin, Poland
Paweł Stępień: Institute of Economics and Finance, University of Szczecin, 71-101 Szczecin, Poland

Energies, 2024, vol. 17, issue 17, 1-21

Abstract: In the field of economic analysis, the study of the EU ETS policy has primarily focused on the impact of renewable energy consumption on economic growth, as well as the role of legal and fiscal instruments in the development of clean energy. This study aimed to evaluate the effectiveness of the EU ETS policy in altering the energy mix of selected European countries, providing both cognitive and applicational value. The evaluation of the effectiveness of this policy focused on the structure of the energy mix and the relationship between rising CO 2 emission allowance prices and the decreasing share of coal in the energy mix. The goal was achieved through statistical analysis of secondary sources, primarily sourced from Bloomberg (2016–2024). The research findings indicated that changes in the structure of energy sources varied across the studied European countries, due to the adopted energy source utilization strategy, resource availability, and geopolitical situations. Additionally, different correlation values were noted between rising CO 2 emission allowance prices and the expected reduction in fossil fuel use. Therefore, the EU ETS policy does not fulfill its assigned role—its implementation contributes to disparities in the economic situations of European economies and creates conditions for unequal competition.

Keywords: policy; effectiveness; EU ETS; energy mix; price; CO 2 emission allowances; Europe (search for similar items in EconPapers)
JEL-codes: Q Q0 Q4 Q40 Q41 Q42 Q43 Q47 Q48 Q49 (search for similar items in EconPapers)
Date: 2024
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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