Misato Sato

This study examines the influence of relative energy prices on the geographical distribution of industrial investments across 41 countries. Read more

This study examines the causal impact of compensation payments for indirect carbon costs on UK manufacturing plants. Read more

This paper investigates whether financial markets respond to firms’ climate actions. Read more

This working paper presents evidence that litigation reduces firm value. This means that climate litigation should be considered a relevant financial risk by lenders, financial regulators and governments. Read more

A growing literature suggests that carbon emissions are most efficiently reduced by carbon pricing. The evidence base on the effectiveness... Read more

This paper provides evidence on the characteristics of low-carbon jobs in the United States and reveals the potential skills gaps and hiring difficulties emerging in specific labour markets affected by the low-carbon transition. Read more

The authors of this paper review the state of knowledge concerning international CO2 emission transfers associated particularly with trade in energy-intensive goods and concerns about carbon leakage arising from climate policies. Read more

This paper analyses the evolution of the EU ETS from a political economy perspective, emphasizing the interaction of economic principles and political interests at pivotal moments, and showing how each compromise changed the scope for future design choices. Read more

This paper provides new evidence that financial markets value firms’ expansion into production of low carbon goods and services, but they remain cautious on divesting from the most polluting industries. Read more

This paper examines how diversifying and specialising production towards environmental goods and services is associated with the profitability and market valuation of firms. Read more

The results of this paper show that upon deciding to invest, firms are attracted to regions that have lower energy prices. This supports arguments for better targeting leakage prevention measures to complement carbon pricing for energy-intensive industrial activities. Read more

– External link to paper – External link to data Energy price rises for industry are a major political concern.... Read more

Benchmarks within emissions trading schemes are used to determine the level of free allocation of permits to sectors at the risk of carbon leakage. This paper analyses how the design of such benchmarks can impact on firms’ production decisions and create efficient incentives for production and technology choices. Read more

This article reviews the empirical literature on the impacts of environmental regulations on firms’ competitiveness as measured by trade, industry location, employment, productivity, and innovation. Read more

Abstract Output-based allocation (OBA) is one of the main options discussed for addressing carbon leakage in emissions trading systems. This... Read more

International carbon offsetting can help reduce compliance costs in emissions trading schemes and at the same time support carbon mitigation... Read more

This paper measures the response of bilateral trade flows to differences in industrial energy prices across countries. Using a rich... Read more

It is well known that discontinuous jumps or thresholds in tax or subsidies are socially inefficient, because they create incentives... Read more

This paper proposes an innovative solution to distribute free allowances to the cement sector under emissions trading systems. Read more

New research analsying major trends in global energy prices and the extent to which energy prices are a good proxy for emissions policy stringency. New dataset available. Read more

This paper measures the response of bilateral trade flows to differences in industrial energy prices across countries. Using a panel... Read more

Headline issue Energy intensive and trade exposed sectors receive a proportion of their allowances (EUAs) for the European Union emissions... Read more

As increasingly complex modelling approaches to quantifying embodied carbon in trade have become popular, the lack of disaggregation has been identified as a key weakness. This paper quantifies embodied carbon in bilateral trade at the product level. Read more

As many countries, regions, cities, and states implement emissions trading policies to limit CO2 emissions, they turn to the European Union's experience with its emissions trading scheme since 2005. Read more

One of the central debates surrounding the design of the European Union Emissions Trading Scheme is the approach to address carbon leakage concerns. Read more

Fankhauser, Samuel, Bowen, Alex, Calel, Raphael, Dechezlepretre, Antoine, Grover, David, Rydge, James and Sato, Misato (2013) Who will win the... Read more

This paper critically reviews the literature on embodied carbon in trade and evaluates our present empirical understanding of these flows. Read more

Working Paper 113 Abstract One of the central debates surrounding the design of the EU Emissions Trading Scheme is the... Read more

Working Paper 106 Abstract As an increasing number of countries, regions, cities and states implement emission trading policies to limit... Read more

Working Paper 94 Abstract As the world considers greener forms of economic growth, countries and sectors are beginning to position... Read more

Working Paper 77 Abstract Measuring consumption-based emissions and the implied embodied emissions in trade (EET) has seen a resurgence in... Read more

This report provides a detailed characterisation of low-carbon jobs from the last decade in the United States and the United Kingdom, bringing new evidence to support policy discussions. Read more

This submission to the UK ETS Authority consultation on ‘Developing the UK Emissions Trading Scheme (ETS)’ provides evidence on implementing a net zero consistent ETS cap, Free Allocation policy, the expansion of the UK ETS to additional sectors, and incorporating greenhouse gas removal into the scheme. Read more

There has been a resurgence in the debate around Carbon Border Adjustment Mechanisms (CBAMs) and the role they may play in preserving the effectiveness of climate action in high ambition countries. This report explores how the European Union’s CBAM, announced to come into force by the end of 2022, might affect the UK. Read more

To tackle the challenges of climate change, more investment needs to be mobilised in low-carbon technologies and capital assets. This report examines the implications for firms as they diversify into the green marketplace. Read more

This special report for the LSE Growth Commission shows why it is sensible for environmental sustainability to be at the heart of the UK’s growth strategy and how this can be achieved, setting out recommendations for government across the areas of innovation, infrastructure, skills and cities. Read more

This paper responds to a question on overcoming potential barriers to the uptake of recoverable heat technologies in industry in the UK Government's call for evidence on the Industrial Heat Recovery Support programme. Read more

A project led jointly by Climate Strategies and DIW Berlin has been exploring whether inclusion of domestic sales of selected... Read more

This report provides a short summary of assessment methodologies that have been used to evaluate different operational aspects and outcomes of existing trading schemes, a literature which to date draws primarily from the EU ETS experience. Read more

This report analyses the effectiveness of climate and other related policies in the steel and cement sector over the last 15 years and explores what policy options are available for carbon intensive materials. Read more

Report shows that environmental regulations have only a a marginal impact on competiviveness and that the benefits often outweigh the costs Read more

Study demonstrates how a portfolio of low-carbon opportunities exists which can modernize the steel industry and achieve climate benefits at the same time. The study concludes that the European steel industry has to be highly energy-efficient and innovative to secure its future and that low-carbon transformation offers such a perspective. Read more

Cement industry top management now has little confidence in the EU ETS;  structural reform is needed to help investment in... Read more

Neuhoff, K., Acworth, W., Dechezleprêtre, A., Dröge, S., Sartor, O., Sato, M., Schleicher, S., and Schopp, A. 2014. Climate Strategies.... Read more

Prepared for the Green Economy Policy Commission (GEPC), August 2013. Read more

Netherlands Environmental Assessment Agency, 2013. Download paper   Read more

New research analsying major trends in global energy prices and the extent to which energy prices are a good proxy for emissions policy stringency. New dataset available. Read more

As increasingly complex modelling approaches to quantifying embodied carbon in trade have become popular, the lack of disaggregation has been identified as a key weakness. This paper quantifies embodied carbon in bilateral trade at the product level. Read more

FT, 30 November 2023 Read more

A paper by researchers from the Grantham Research Institute at LSE has been awarded the Best Paper Prize at the 6th annual conference of the Global Research Alliance on Sustainable Finance and Investment (GRASFI).   Read more

Long read on whether carbon markets can accelerate progress towards net zero. FT, 15 June 2023 Read more

This article which reports on how an apparent shortage of green skills in the workforce may undermind climate targets. The... Read more

Fossil fuel companies register drop in value after litigation or unfavourable judgments. Misato Sato is quoted in the piece. Guardian... Read more

The high quality of research by the London School of Economics and Political Science has been recognised in the results of the... Read more

Conflicting evidence has been presented on carbon leakage, caused largely due to misconceptions over the term’s meaning. The confusion is worth disentangling because it is obscuring the debate on how to act, argue Misato Sato and Josh Burke. Read more

Misato Sato, Assistant Professorial Research Fellow, at the Grantham Research Institute has received an award for the Young Economist Best... Read more

President Trump claimed that the Paris Agreement on climate change “disadvantages the United States to the exclusive benefit of other countries". This commentary highlights a number of recent research papers which show no evidence for such claims. Read more

UK Data Service – Case Study, 18 July 2016 Read more

This commentary reflects on a recent report which looked at why some companies offset their emissions outside of Europe and why others don’t. Read more

With MEPs currently considering the reform of the European Union Emissions Trading System (EU ETS) for Phase 4 (2021-2030), Misato Sato makes the case for revised free allocation of emissions permits. Read more

Business Green, 8 July (article requires subscription to access) Read more

If environmental red tape is the source of so many economic woes, why is the evidence of the harm they cause so sketchy? Read more

Dr Antoine Dechezleprêtre and Dr Misato Sato explain the findings of their latest report, ‘The impacts of environmental regulations on competitiveness’ published by the Grantham Research Institute on Climate Change and the Environment at London School of Economics and Political Science. Read more

Grantham Institute report says environmental regulations can drive economic growth by encouraging business innovation Read more