Did the EU ETS make a difference? An empirical assessment using Lithuanian firm-level data

Jurate Jarait () and Corrado Di Maria
Additional contact information
Jurate Jarait: CERE, Umeå University, http://www.cere.se
Authors registered in the RePEc Author Service: Jūratė Jaraitė-Kažukauskė

No 2014:2, CERE Working Papers from CERE - the Center for Environmental and Resource Economics

Abstract: We use a panel dataset of about 5,000 Lithuanian firms between 2003 and 2010, to assess the impact of the EU ETS on the environmental and economic performance of participating firms. Using a matching methodology, we are able to estimate the causal impact of EU ETS participation on CO2 emissions, CO2 intensity, investment behaviour and profitability of participating firms. Our results show that ETS participation did not lead to a reduction in CO2 emissions, while we identify a slight improvement in CO2 intensity. ETS participants are shown to have retired part of their less efficient capital stock, and to have made modest additional investments from 2010. We also show that the EU ETS did not represent a drag on the profitability of participating firms.

Keywords: Cap and trade; CO2 emissions; EU emissions trading system; ex-post evaluation; firm competitiveness; investment; matching; panel data; profits (search for similar items in EconPapers)
JEL-codes: C23 L50 Q58 (search for similar items in EconPapers)
Pages: 41 pages
Date: 2014-01-21
New Economics Papers: this item is included in nep-ene and nep-env
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (11)

Downloads: (external link)
http://www.cere.se/documents/wp/2014/CERE_WP2014-2.pdf (application/pdf)
Our link check indicates that this URL is bad, the error code is: 404 Not Found (http://www.cere.se/documents/wp/2014/CERE_WP2014-2.pdf [301 Moved Permanently]--> https://www.cere.se/documents/wp/2014/CERE_WP2014-2.pdf)

Related works:
Journal Article: Did the EU ETS Make a Difference? An Empirical Assessment Using Lithuanian Firm-Level Data (2016)
Journal Article: Did the EU ETS Make a Difference? An Empirical Assessment Using Lithuanian Firm-Level Data (2016)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:hhs:slucer:2014_002

Access Statistics for this paper

More papers in CERE Working Papers from CERE - the Center for Environmental and Resource Economics
Bibliographic data for series maintained by Mona Bonta Bergman ().