EIB Working Paper 2024/05 - A positive trade-off: Emissions reduction and costs under Phase IV of the Emissions Trading System
The manufacturing sector is a significant contributor to greenhouse gas emissions in the EU. This paper investigates the impact of the EU Emissions Trading System (ETS) on this manufacturing sector. It employs a panel regression analysis at the sectorial level spanning 2012 to 2022 to examine how ET...
Tallennettuna:
| Aineistotyyppi: | Online |
|---|---|
| Kieli: | englanti |
| Julkaistu: |
European Investment Bank
2025
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| Aiheet: | |
| Linkit: | ONIX_20250402_9789286158285_18 |
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| _version_ | 1869521660653076480 |
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| collection | Directory of Open Access Books |
| description | The manufacturing sector is a significant contributor to greenhouse gas emissions in the EU. This paper investigates the impact of the EU Emissions Trading System (ETS) on this manufacturing sector. It employs a panel regression analysis at the sectorial level spanning 2012 to 2022 to examine how ETS prices and the allocation of free allowances influence sectors’ carbon efficiency, direct emissions, production and prices, while controlling for other confounding factors. The results identify investment as a key channel, which mediates the effect of ETS prices on the carbon efficiency of firms. They suggest that a reduction in free allowances combined with escalating ETS prices, mediated by increased investment, can bolster the environmental performance of the EU manufacturing sector without significantly compromising its competitive position. |
| format | Online |
| id | doab-20.500.12854ir-158080 |
| institution | Directory of Open Access Books |
| language | eng |
| publishDate | 2025 |
| publishDateRange | 2025 |
| publishDateSort | 2025 |
| publisher | European Investment Bank |
| publisherStr | European Investment Bank |
| record_format | ojs |
| spelling | doab-20.500.12854ir-1580802025-07-30T09:00:08Z EIB Working Paper 2024/05 - A positive trade-off: Emissions reduction and costs under Phase IV of the Emissions Trading System thema EDItEUR::K Economics, Finance, Business and Management::KF Finance and accounting thema EDItEUR::K Economics, Finance, Business and Management::KF Finance and accounting The manufacturing sector is a significant contributor to greenhouse gas emissions in the EU. This paper investigates the impact of the EU Emissions Trading System (ETS) on this manufacturing sector. It employs a panel regression analysis at the sectorial level spanning 2012 to 2022 to examine how ETS prices and the allocation of free allowances influence sectors’ carbon efficiency, direct emissions, production and prices, while controlling for other confounding factors. The results identify investment as a key channel, which mediates the effect of ETS prices on the carbon efficiency of firms. They suggest that a reduction in free allowances combined with escalating ETS prices, mediated by increased investment, can bolster the environmental performance of the EU manufacturing sector without significantly compromising its competitive position. 2025-04-03T05:53:50Z 2025-04-03T05:53:50Z 2025-04-02T13:56:14Z 2024 book ONIX_20250402_9789286158285_18 https://library.oapen.org/handle/20.500.12657/100561 9789286158285 https://directory.doabooks.org/handle/20.500.12854/158080 eng open access image/jpeg n/a https://library.oapen.org/bitstream/20.500.12657/100561/1/9789286158285_pdf.pdf European Investment Bank 10.2867/8720105 10.2867/8720105 feca012f-a3d8-4aac-95aa-b6cf4bdbed7c 9789286158285 34 Luxembourg open access |
| spellingShingle | thema EDItEUR::K Economics, Finance, Business and Management::KF Finance and accounting thema EDItEUR::K Economics, Finance, Business and Management::KF Finance and accounting EIB Working Paper 2024/05 - A positive trade-off: Emissions reduction and costs under Phase IV of the Emissions Trading System |
| title | EIB Working Paper 2024/05 - A positive trade-off: Emissions reduction and costs under Phase IV of the Emissions Trading System |
| title_full | EIB Working Paper 2024/05 - A positive trade-off: Emissions reduction and costs under Phase IV of the Emissions Trading System |
| title_fullStr | EIB Working Paper 2024/05 - A positive trade-off: Emissions reduction and costs under Phase IV of the Emissions Trading System |
| title_full_unstemmed | EIB Working Paper 2024/05 - A positive trade-off: Emissions reduction and costs under Phase IV of the Emissions Trading System |
| title_short | EIB Working Paper 2024/05 - A positive trade-off: Emissions reduction and costs under Phase IV of the Emissions Trading System |
| title_sort | eib working paper 2024 05 a positive trade off emissions reduction and costs under phase iv of the emissions trading system |
| topic | thema EDItEUR::K Economics, Finance, Business and Management::KF Finance and accounting thema EDItEUR::K Economics, Finance, Business and Management::KF Finance and accounting |
| topic_facet | thema EDItEUR::K Economics, Finance, Business and Management::KF Finance and accounting thema EDItEUR::K Economics, Finance, Business and Management::KF Finance and accounting |
| url | ONIX_20250402_9789286158285_18 |