What is the impact of the EU ETS on carbon emissions and economic performance of regulated companies?
Speech held at Bruegel event on "How will the Paris agreement impact EU climate and energy policies?", on 8 February 2016.
The price of carbon emissions has decreased markedly since the first draft of the Paris Agreement has been released. The decrease in the price of futures is the largest observed over the last two months.
As the economic crisis shifted policymakers’ attention from long-term sustainability to short-term recovery, progress has stalled – and the consequences could be dramatic.
Following a vote by the European Parliament to boost the price of allowances on the EU’s carbon market, Georg Zachmann analyses the debate surrounding the Emmission Trading System (ETS) as a whole. Zachmann believes that "backloading," or witholding the allowances to fight their falling price, is part of a politically charged debate with little economic […]
Wednesday afternoon will see the fourth vote in the European Parliament (this time again in the environment committee) on a scheme to temporarily reduce the number of allowances available to participants in the EU emissions trading system in order to stabilise dwindling allowance prices.
Fragen und Antworten von Bruegel-Forscher Georg Zachmann zur Krise des Europäischen Emissionshandelssystems.
The issue: The European Union's emissions trading system (ETS), introduced in 2005, is the centerpiece of EU decarbonisation efforts and the biggest emissions trading scheme in the world. After a peak in May 2008, the price of ETS carbon allowances started to collapse, and industry, civil society and policymakers began to think about how to ‘repair the ETS’.
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 […]