Ex-post analysis of EU-ETS

Task: part of the ENTRACTE research project|

Our objective is to conduct an empirically based analysis of the impact the EU ETS has had on regulated firms along several dimensions, ranging from carbon emissions to low-carbon innovation, and including profits, employment and productivity.

We also explore the interaction between the EU ETS and other policy measures, which may characterise some member states but not others. For example, it could be the case that the ETS has been particularly efficient in countries where it was combined with a carbon tax. The dataset we build for this project is unique and allows us to look at these questions.

Such an understanding provided by the ex-post analysis is essential to optimise the future design of the EU ETS in terms of environmental effectiveness and economic efficiency. Furthermore, various countries are currently in the process of designing climate change policies with emissions trading as a key feature.

By assessing the impact of the current climate policy in Europe, this research may have a strong influence on the political viability of future climate policies abroad.
 

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Antoine Dechezleprêtre|