The Sustainability Impact of the EU Emissions Trading System on the European Industry

Raimund Bleischwitz, Katrin Fuhrmann and Elias Huchler

MPRA Paper from University Library of Munich, Germany

Abstract: This BEEP explains the mechanism of the EU Emissions Trading System (ETS) for the greenhouse gas carbon dioxide and explore into its likely sustainability impact on European industry. In doing so, it focuses on energy-intensive indus-tries like cement, steel and aluminium production as well as on the emerging hy-drogen economy. The BEEP concludes that at the moment it is still very inconsis-tently implemented and has a fairly narrow scope regarding greenhouse gases and involved sectors. It may also give an incentive to relocate for energy-intensive industries. In its current format, the EU ETS does not yet properly facilitate long term innovation dynamics such as the transition to a hydrogen economy. Nevertheless, the EU ETS is foremost a working system that – with some improvements – has the potential to become a pillar for effective and efficient climate change policy that also gives incentives for investment into climate friendly policies.

Keywords: emissions trading; EU; sustainability (search for similar items in EconPapers)
JEL-codes: F15 K32 L51 Q58 (search for similar items in EconPapers)
Date: 2007-06, Revised 2007-09
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (5)

Published in Bruges European Economic Policy Paper briefing no. 17 (2007): pp. 1-33

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Related works:
Working Paper: The Sustainability Impact of the EU Emissions Trading System on the European Industry (2007)
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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:14519

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