Industry Compensation under Relocation Risk: A Firm-Level Analysis of the EU Emissions Trading Scheme

Martin, Ralf; Muûls, Mirabelle; Preux, Laure de; Wagner, Ulrich J.

doi:10.1257/aer.104.8.2482

Cited by 264 publications

(153 citation statements)

References 32 publications

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“…Vlachou, 2014) to the apparently neutral effects of EU ETS on innovative activities (Borghesi et al 2012;Calel & Dechezleprêtre, 2014). EU ETS effects on CO 2 reduction are instead less controversial, as previous empirical literature outlined its positive environmental effects (Martin et al 2014a;2014b). EC proposed indeed a strong revision of the Scheme for its third phase -2020(EC 2008.…”

Section: Market or Incentive Based Instrumentsmentioning

confidence: 99%

Environmental and innovation policies for the evolution of green technologies: a survey and a test

2015

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The aim of this paper is to provide an updated survey of the ‘‘state of the\ud art’’ in environmental policies, with a particular focus on those policies fostering the\ud generation, diffusion and exploitation of technologies improving environmental\ud performances, i.e. eco-innovations. In particular, we provide a critical appraisal of\ud the existing policy schemes, by emphasizing how the demarcation between environmental\ud and technology policies gets more and more blurred. The case for a\ud systemic approach to the implementation of policy measures is finally discussed.\ud Econometric evidence about the importance of environmental policies is also provided\ud in the ‘‘Appendix’’

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Section: Market or Incentive Based Instrumentsmentioning

confidence: 99%

Environmental and innovation policies for the evolution of green technologies: a survey and a test

2015

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“…11 With a completely dierent methodology, Martin et al (2012) found an overcompensation of e6.7 billions for all sectors covered by the EU-ETS. To highlight the discussion the welfare for each class of scenario is drawn as a function of the allowance allocation or border adjustment per tonne of clinker.…”

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confidence: 99%

Carbon leakage and capacity-based allocations: Is the EU right?

Meunier

Ponssard

Quirion

2014

Journal of Environmental Economics and Management

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Carbon Leakage and Capacity-Based Allocations. Is the EU right? Terms of use: Documents in EconStor mayAbstract Two main approaches have been implemented in regional CO2 markets to address competitiveness and carbon leakage: output based allocation (Australia, California, New Zealand) and capacity based allocation (EU). This paper characterizes the best policy, given that auctioning with border adjustment is excluded. A simple model is used in which the regional demand is subject to business cycles, and the import pressure depends on the demand level and capacity constraints. A combination of output and capacity based allocation is proved to be the optimal second best policy. The EU scheme for 2013-2020 is discussed, using cement as a case study.JEL-Code: D240, L130, H230, L740.

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“…Martin et al (2012) estimated an annual windfall profit of € 6.7 billion through freely allocated permits to industry during the third period of the ETS. Bruyn et al (2010) estimated total windfall profits of € 14 billion for the period between 2005 and 2008 for refineries as well as the iron and steel sector.…”

Section: Discussionmentioning

confidence: 99%

Winners and Losers of EU Emissions Trading: Insights from the EUTL Transfer Dataset

Cludius¹

2018

EEEP

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This paper analyzes distributional effects the EU Emissions Trading Scheme (EU ETS) created between participants of the scheme during its first trading period. To this end, a dataset recording all transfers during the first period of the EU ETS, originally at account level, was enhanced by adding information about parent companies, firm characteristics, and carbon prices. A two-step selection model was formulated and applied to the data.To account for a number of uncertainties, sensitivity analysis with regard to forward and futures trading was carried out. Findings confirm that free allocation in excess of actual emissions (‹overallocation›) is a major source of gain generated under the Scheme. The fact that small companies are much less likely to participate in trading is a further cause of distributional effects. This paper also discusses that windfall profits obtained by passing through the cost of freely allocated allowances to consumers are likely to dwarf the gains and losses made on the market for EU Allowances. It is therefore quite likely that the majority of companies covered by the EU ETS generated gains during its first period, either through selling overallocation on the market or by generating windfall profits on product markets. Therefore, decisions about the level of free allocation not only have distributional implications for the participants of an emissions trading scheme but determine the distribution of costs and benefits between covered companies and households.

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Industry Compensation under Relocation Risk: A Firm-Level Analysis of the EU Emissions Trading Scheme

Cited by 264 publications

References 32 publications

Environmental and innovation policies for the evolution of green technologies: a survey and a test

Environmental and innovation policies for the evolution of green technologies: a survey and a test

Carbon leakage and capacity-based allocations: Is the EU right?

Winners and Losers of EU Emissions Trading: Insights from the EUTL Transfer Dataset

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