IDEAS home Printed from https://ideas.repec.org/a/bla/jecsur/v34y2020i2p320-343.html
   My bibliography  Save this article

The Impact Of The Eu Emissions Trading System On Competitiveness And Carbon Leakage: The Econometric Evidence

Author

Listed:
  • Stefano F. Verde

Abstract

This paper carefully surveys the econometric literature that tests for competitiveness effects and related carbon leakage caused by the EU Emissions Trading System (EU ETS). The results of this literature tell us that to date there is no evidence of the EU ETS having had widespread negative or positive effects on the competitiveness of regulated firms, nor is there evidence of significant carbon leakage. However, the paper also identifies three important caveats to this general conclusion. Firstly, the evidence we have still largely refers to the first two trading periods, namely Phases I (2005–2007) and II (2008–2012). Secondly, some heterogeneity of estimated effects is observed, but patterns, notably sectoral patterns, hardly emerge. Thirdly, very little explored is whether the EU ETS has had long‐term effects on the economy via investment leakage or firm dynamics. Further empirical studies investigating these long‐term effects are particularly desirable.

Suggested Citation

  • Stefano F. Verde, 2020. "The Impact Of The Eu Emissions Trading System On Competitiveness And Carbon Leakage: The Econometric Evidence," Journal of Economic Surveys, Wiley Blackwell, vol. 34(2), pages 320-343, April.
    • Handle: RePEc:bla:jecsur:v:34:y:2020:i:2:p:320-343
    DOI: 10.1111/joes.12356
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/joes.12356
    Download Restriction: no
    File URL: https://libkey.io/10.1111/joes.12356?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:jecsur:v:34:y:2020:i:2:p:320-343. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: http://www.blackwellpublishing.com/journal.asp?ref=0950-0804 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.