Past Event

Environmental and economic effects of the EU ETS

What is the impact of the EU ETS on carbon emissions and economic performance of regulated companies?

Date: December 6, 2018, 12:30 pm Topic: Green economy

VIDEO & AUDIO RECORDINGS


SUMMARY

This event was chaired by Bruegel’s Senior Fellow Georg Zachmann, and saw the participation of Antoine Dechezleprêtre (Senior Economist, Environment Directorate and Economics Department, OECD), Beatriz Yordi Aguirre (Director for EU and International Carbon Markets, European Commission, DG CLIMA) and Sander de Bruyn (Environmental economics coordinator, CE Delft).

The presentation and discussion focused on the new OECD’s paper investigating the impacts of the European Union Emissions Trading System (EU ETS), Europe’s main climate change policy, on both carbon emissions and economic performance of regulated companies.

The empirical assessment of the EU ETS system attempts to analyse the impact causal impact of EU ETS on carbon emissions and firm performance, making use of highly granular data at the firm level and a complex econometric approach. OECD’s researchers matched the firms which have similar balance-sheet characteristics pre-2005 (e.g. assets and revenues), but are on different sides of the ETS regulation thresholds (e.g. 20 MWh of thermal input for combustion). By exploiting these breaks in data, they could set up a treatment versus control group experiment, and estimate the policy impact via a difference-in-differences methodology.

On the firm-performance they find a significant and positive, significant impact on revenues and fixed assets. They also find that EU ETS provoked a modest reduction in emissions levels, without harming the performance of the firm. The paper leaves a number of questions open for research, which were discussed with the panel and the floor (that included scholars, institution and industry representatives), namely: what are the mechanism that make this transmission possible? What will happen if the carbon price increases? Can we say that, overall, the EU ETS system is working?

One key point of discussion with the Chair Gerorg Zachmann, concerns the distributional effects of climate policies, subject of a new Bruegel Blueprint.

Event notes by Enrico Bergamini

Event materials

Presentation by Antoine Dechezlepretre Slide by Georg Zachmann Presentation by Sander de Bruyn

Schedule

Dec 6, 2018

12:30-13:00

Check-in and lunch

13:00-13:20

Presentation

Antoine Dechezleprêtre, Senior Economist, Environment Directorate and Economics Department, OECD

13:20-14:10

Discussion

Chair: Georg Zachmann, Senior Fellow

Antoine Dechezleprêtre, Senior Economist, Environment Directorate and Economics Department, OECD

Beatriz Yordi Aguirre, Director, European & International Carbon Markets, European Commission, Directorate General for Climate Action (CLIMA)

Sander de Bruyn, Environmental economics coordinator, CE Delft

14:10-14:30

Q&A

14:30

End

Speakers

Sander de Bruyn

Environmental economics coordinator, CE Delft

Antoine Dechezleprêtre

Senior Economist, Environment Directorate and Economics Department, OECD

Beatriz Yordi Aguirre

Director, European & International Carbon Markets, European Commission, Directorate General for Climate Action (CLIMA)

Georg Zachmann

Senior Fellow

Location & Contact

Bruegel, Rue de la Charité 33, 1210 Brussels

Matilda Sevon

[email protected]

Read about event More on this topic
 

Upcoming Event

Jan
25
17:00

Where is Biden's climate policy?

A year after his inauguration, what has President Biden really achieved on climate?

Speakers: Samantha Gross, Dan Lashof, Michael Mehling and Simone Tagliapietra Topic: Green economy Location: Bruegel, Rue de la Charité 33, 1210 Brussels
Read article More on this topic
 

Opinion

How an open climate club can generate carbon dividends for the poor

The German-led G7 can accelerate decarbonisation while tackling climate justice.

By: Andreas Goldthau and Simone Tagliapietra Topic: Green economy Date: January 11, 2022
Read article More on this topic More by this author
 

Opinion

What the EU climate package has to overcome in 2022

An overview of the EU climate package to be negotiated in 2022.

By: Simone Tagliapietra Topic: Green economy Date: January 4, 2022
Read article More on this topic
 

External Publication

Sustainability transition and the European Green Deal: A macro-dynamic perspective

Report of the results of work carried out at ETC/WMGE on Green economy transition: Macroeconomic analytical framework in 2020 and 2021.

By: Nicolò Barbieri, Ilaria Beretta, Valeria Costantini, Alessio D’Amato, Marianna Gilli, Giovanni Marin, Massimiliano Mazzanti, Simone Tagliapietra, Roberto Zoboli,, Mariangela Zoli, Susanna Paleari, Andrea M. Bassi and Stefan Ulrich Speck Topic: Green economy Date: January 3, 2022
Read article
 

Blog Post

European governanceInclusive growth

12 Charts for 21

A selection of charts from Bruegel’s weekly newsletter, analysis of the year and what it meant for the economy in Europe and the world.

By: Hèctor Badenes, Henry Naylor, Giuseppe Porcaro and Yuyun Zhan Topic: Banking and capital markets, Digital economy and innovation, European governance, Global economy and trade, Green economy, Inclusive growth, Macroeconomic policy Date: December 21, 2021
Read article More on this topic
 

Blog Post

How serious is Europe’s natural gas storage shortfall?

Europe may not have enough natural gas in storage for the coming winter; close monitoring of the situation will be essential.

By: Georg Zachmann, Ben McWilliams and Giovanni Sgaravatti Topic: Green economy Date: December 21, 2021
Read about event More on this topic
 

Past Event

Past Event

How to deal with small banks: consolidation, tailoring and the fintech challenge

Small banks face multiple challenges. What structural changes are needed to tackle these pressures?

Speakers: Alexander Lehmann, Nicolas Véron, Xavier Vives, Anne Fröhling and Philip Evans Topic: Banking and capital markets Location: Bruegel, Rue de la Charité 33, 1210 Brussels Date: December 9, 2021
Read about event More on this topic
 

Past Event

Past Event

Inside the European crises: a conversation with Marco Buti

At this event Marco Buti talks to Maria Demertzis, André Sapir and Guntram Wolff about his new book, in which he gives an insiders look at European policy making.

Speakers: Marco Buti, Maria Demertzis, André Sapir and Guntram B. Wolff Topic: European governance Location: Bruegel, Rue de la Charité 33, 1210 Brussels Date: December 3, 2021
Read article More on this topic
 

External Publication

Europe's path to net-zero

Fostering the industrial component of the European Green Deal: key principles and policy options.

By: Simone Tagliapietra and Reinhilde Veugelers Topic: Green economy Date: December 3, 2021
Read about event More on this topic
 

Past Event

Past Event

European Green Deal beyond the Brussels climate bubble

How can the European Green Deal be implemented beyond Brussels?

Speakers: Maciej Bukowski, Sarah Coupechoux, Zsolt Darvas, Susi Dennison, Michal Horvath, Lara Lázaro, Marie Le Mouel, Michael Losch, Giulia Novati, Davide Panzeri, Thomas Pellerin-Carlin, Nolan Theisen, Shahin Vallée, Marc Vanheukelen and Georg Zachmann Topic: Green economy Location: Bruegel, Rue de la Charité 33, 1210 Brussels Date: December 2, 2021
Read about event More on this topic
 

Past Event

Past Event

Role of innovation in decarbonisation

A fireside conversation with Eni CEO Claudio Descalzi on decarbonisation.

Speakers: Claudio Descalzi and Guntram B. Wolff Topic: Green economy Location: Bruegel, Rue de la Charité 33, 1210 Brussels Date: November 29, 2021
Read article More on this topic More by this author
 

Podcast

Podcast

COP26: global stocktake and what’s next

What happened and what didn’t happen at COP26?

By: The Sound of Economics Topic: Green economy Date: November 25, 2021
Load more posts