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Working Paper

Assessing the impact of the EU ETS using firm level data

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 […]

By: , and Date: July 15, 2011 Topic: Energy & Climate

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.

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Working Paper

Can climate change be tackled without ditching economic growth?

The notion of degrowth to reduce greenhouse gas emissions appears unrealistic; decoupling of emissions from growth is in principle possible but requires unprecedented efforts.

By: Klaas Lenaerts, Simone Tagliapietra and Guntram B. Wolff Topic: Energy & Climate Date: September 16, 2021
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Blog Post

Is Europe’s gas and electricity price surge a one-off?

Surging natural gas prices in Europe, driven by rising demand and tight supply, are pushing up electricity prices; to prevent volatility, governments need to commit more clearly to a low-carbon future.

By: Simone Tagliapietra and Georg Zachmann Topic: Energy & Climate Date: September 13, 2021
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Policy Contribution

A green fiscal pact: climate investment in times of budget consolidation

Increasing green public investment while consolidating deficits will be a central challenge of this decade. A green fiscal pact would address this tension, but difficult trade-offs remain.

By: Zsolt Darvas and Guntram B. Wolff Topic: European Macroeconomics & Governance Date: September 9, 2021
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External Publication

Conditions are ideal for a new climate club

The technical and political conditions are ideal for the creation of a climate club to catalyse tougher climate action worldwide.

By: Simone Tagliapietra and Guntram B. Wolff Topic: Energy & Climate Date: September 9, 2021
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Podcast

Podcast

A Late Bloomer: where is China’s climate plan?

The world awaits China's concrete plan on carbon reduction, but the country is following its own pace.

By: The Sound of Economics Topic: Global Economics & Governance Date: September 8, 2021
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Past Event

Past Event

The role of the state in providing infrastructure for decarbonisation

Bruegel Annual Meetings, Day 2 - Who should be responsible for providing crucial infrastructure for decarbonisation and how should it be managed?

Speakers: Jean-Bernard Lévy, Diederik Samsom, Simone Tagliapietra, Laurence Tubiana and Georg Zachmann Topic: Energy & Climate Location: Palais des Academies, Rue Ducale 1 Date: September 2, 2021
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Blog Post

Hydrogen development strategies: a global perspective

Despite different strategies, the European Union, the United Kingdom, the United States, China and Japan all expect hydrogen to play a significant role in the decarbonisation of their economies by expanding its use in energy and transport systems.

By: Alicia García-Herrero, Simone Tagliapietra and Victor Vorsatz Topic: Energy & Climate Date: August 30, 2021
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Blog Post

How much investment do we need to reach net zero?

The size and scope of investments needed to reach net zero will have significant macroeconomic implications.

By: Klaas Lenaerts, Simone Tagliapietra and Guntram B. Wolff Topic: Energy & Climate Date: August 25, 2021
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Opinion

Poorest should be able to buy into decarbonisation

Climate action should be designed in a way that improves social equality.

By: Simone Tagliapietra Topic: Energy & Climate Date: August 19, 2021
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Opinion

Why China should fear the EU's carbon border tax

Expect Beijing to soon start lobbying against the proposal.

By: Alicia García-Herrero Topic: Energy & Climate, Global Economics & Governance Date: July 26, 2021
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External Publication

A Safety Net for the Green Economy

How to protect workers hurt by the fight against climate change.

By: Simone Tagliapietra Topic: Energy & Climate Date: July 20, 2021
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Blog Post

The European Union’s carbon border mechanism and the WTO

To avoid any backlash, the European Union should work with other World Trade Organisation members to define basic principles of carbon border adjustment mechanisms.

By: André Sapir Topic: Energy & Climate, Global Economics & Governance Date: July 19, 2021
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