 Low-Carbon Transition of EU-ETS Firms: Assessing the Long-Term Effects of Covid-19A chapter in Energy Transition, Climate Change, and COVID-19, 2021, pp 45-72 from Springer Abstract: Abstract This chapter is the first attempt to assess the potential effects over time of the Covid-19 crisis on the decarbonation of the economy. The focus is more specifically on the dynamics of the European Union Emission Trading System. For this purpose, the interactions between an emissions abatement strategy and a low-carbon investment strategy within the framework of an intertemporal emissions trading system are investigated. An original model is developed and then calibrated. Simulation results suggest that the Covid-19 crisis is unlikely to accelerate the transition to a low-carbon economy. The exogenous shock associated with the Covid-19 crisis increases the price of permits and the stock of “green” capital only in the short term but this impact fades, or even reverses, rapidly in the medium and long term. In the long term, the slowdown of low-carbon investments dominates. Keywords: COVID-19; Climate change mitigation; European Union Emission Trading System; Carbon pricing (search for similar items in EconPapers) There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it. Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:spr:sprchp:978-3-030-79713-3_3 Ordering information: This item can be ordered from DOI: 10.1007/978-3-030-79713-3_3 Access Statistics for this chapter More chapters in Springer Books from Springer |
Is your work missing from RePEc? Here is how to contribute.
Questions or problems? Check the EconPapers FAQ or send mail to .
EconPapers is hosted by the
School of Business at Örebro University.