Assessing the impact of the EU ETS using firm level data
Anta Ndoye and
Georg Zachmann ()
Working Papers of BETA from Bureau d'Economie Théorique et Appliquée, UDS, Strasbourg
· This paper investigates the impact of the European Union’s Emission Trading System (EU ETS) at a firm level. Using panel data on the emissions and performance of more than 2000 European firms from 2005 to 2008, we are able to analyse the effectiveness of the scheme. · The results suggest that the shift from the first phase (2005-2007) to the second phase (2008-2012) had an impact on the emission reductions carried out by firms. The initial allocation also had a significant impact on emission reduction. This challenges the relevance for the ETS of Coase’s theorem (Coase, 1969), according to which the initial allocation of permits is irrelevant for the post-trading allocation of marketable pollution permits. · Finally, we found that the EU ETS had a modest impact on the participating companies’ performance. We conclude that a full auctioning system could help to reduce emissions but could also have a negative impact on the profits of participating companies.
Keywords: panel data; energy; climate change; evaluation econometrics; firm behaviour. (search for similar items in EconPapers)
JEL-codes: C23 D21 Q49 (search for similar items in EconPapers)
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Working Paper: Assessing the impact of the EU ETS using firm level data (2011)
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Persistent link: https://EconPapers.repec.org/RePEc:ulp:sbbeta:2011-15
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