IDEAS home Printed from https://ideas.repec.org/a/eee/enepol/v68y2014icp603-607.html
   My bibliography  Save this article

The European Union Emission Trading System and technological change: The case of the Italian pulp and paper industry

Author

Listed:
  • Fontini, Fulvio
  • Pavan, Giulia

Abstract

We evaluate the contribution of technological change in reducing CO2 emissions in the Italian pulp and paper industry during the first and second phases of application of the European Union Emission Trading System (EU-ETS). We decompose the variation in emission and emission intensity into three different types of effects: a composition effect, a technique effect and a scale effect. The composition effect measures the change in emissions and emissions intensity due to a shift in production towards products that cause less emissions. The technique effect measures the change per each type of product, thereby accounting for technology improvements in the production of each type of good produced. The scale effect singles out the reduction in total emission due to an overall reduction in output. We show that the first phase of the application of EU-ETS has led to a reduction in both emissions and emission intensity due to the composition effect. The technological change has had a limited negative impact on emissions in the first phase, while in the second phase there has been limited technology improvement in the industry. However, the figures of the scale effect show that the larger reduction in emission is due to the overall decrease in output.

Suggested Citation

  • Fontini, Fulvio & Pavan, Giulia, 2014. "The European Union Emission Trading System and technological change: The case of the Italian pulp and paper industry," Energy Policy, Elsevier, vol. 68(C), pages 603-607.
    • Handle: RePEc:eee:enepol:v:68:y:2014:i:c:p:603-607
    DOI: 10.1016/j.enpol.2013.12.020
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0301421513012640
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.enpol.2013.12.020?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
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Stephen Lecourt, 2013. "EU ETS Phase 3 Benchmarks - Implications and Potential Flaws," Economics of Energy & Environmental Policy, International Association for Energy Economics, vol. 0(Number 2).
    2. Stephen Lecourt, 2013. "EU ETS Phase 3 benchmarks: Implications and potential flaws," Working Papers 1305, Chaire Economie du climat.
    3. Arik Levinson, 2009. "Technology, International Trade, and Pollution from US Manufacturing," American Economic Review, American Economic Association, vol. 99(5), pages 2177-2192, December.
    4. Ang, B.W. & Zhang, F.Q., 2000. "A survey of index decomposition analysis in energy and environmental studies," Energy, Elsevier, vol. 25(12), pages 1149-1176.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Shan Yu & Qiang Hou & Jiayi Sun, 2020. "Investment Game Model Analysis of Emission-Reduction Technology Based on Cost Sharing and Coordination under Cost Subsidy Policy," Sustainability, MDPI, vol. 12(6), pages 1-19, March.
    2. Muhammad Azhar Bhatti & Snober Fazal, 2021. "Impact of Modernized Agriculture and Trade on Carbon Emissions: The Role of Fossil Fuel and Renewable Energy Consumption Evidenced from ASEAN States," iRASD Journal of Energy and Environment, International Research Association for Sustainable Development (iRASD), vol. 2(2), pages 55-66, December.
    3. Meleo, Linda, 2014. "On the determinants of industrial competitiveness: The European Union emission trading scheme and the Italian paper industry," Energy Policy, Elsevier, vol. 74(C), pages 535-546.
    4. Bel, Germà & Joseph, Stephan, 2018. "Climate change mitigation and the role of technological change: Impact on selected headline targets of Europe's 2020 climate and energy package," Renewable and Sustainable Energy Reviews, Elsevier, vol. 82(P3), pages 3798-3807.
    5. Jianwen Zhang & Jacob Cherian & Ashak Mahmud Parvez & Sarminah Samad & Muhammad Safdar Sial & Mohammad Athar Ali & Mohammed Arshad Khan, 2022. "Consequences of Sustainable Agricultural Productivity, Renewable Energy, and Environmental Decay: Recent Evidence from ASEAN Countries," Sustainability, MDPI, vol. 14(6), pages 1-13, March.
    6. Teixidó, Jordi & Verde, Stefano F. & Nicolli, Francesco, 2019. "The impact of the EU Emissions Trading System on low-carbon technological change: The empirical evidence," Ecological Economics, Elsevier, vol. 164(C), pages 1-1.
    7. Germà Bel & Stephan Joseph, 2015. "“Certificate Oversupply in the European Union Emission Trading System and its Impact on Technological Change”," IREA Working Papers 201520, University of Barcelona, Research Institute of Applied Economics, revised Sep 2015.
    8. Bel, Germà & Joseph, Stephan, 2018. "Policy stringency under the European Union Emission trading system and its impact on technological change in the energy sector," Energy Policy, Elsevier, vol. 117(C), pages 434-444.
    9. Samuel A Sarkodie & Evans B Ntiamoah & Dongmei Li, 2019. "Panel heterogeneous distribution analysis of trade and modernized agriculture on CO2 emissions: The role of renewable and fossil fuel energy consumption," Natural Resources Forum, Blackwell Publishing, vol. 43(3), pages 135-153, August.
    10. Mandaroux, Rahel & Schindelhauer, Kai & Basse Mama, Houdou, 2023. "How to reinforce the effectiveness of the EU emissions trading system in stimulating low-carbon technological change? Taking stock and future directions," Energy Policy, Elsevier, vol. 181(C).
    11. Meyer Andrew & Pac Grzegorz, 2015. "How Responsive Are EU Coal-Burning Plants to Changes in Energy Prices?," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 15(3), pages 1481-1506, July.
    12. Martínez Arranz, Alfonso, 2015. "Carbon capture and storage: Frames and blind spots," Energy Policy, Elsevier, vol. 82(C), pages 249-259.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Löschel, Andreas & Pothen, Frank & Schymura, Michael, 2015. "Peeling the onion: Analyzing aggregate, national and sectoral energy intensity in the European Union," Energy Economics, Elsevier, vol. 52(S1), pages 63-75.
    2. Voigt, Sebastian & De Cian, Enrica & Schymura, Michael & Verdolini, Elena, 2014. "Energy intensity developments in 40 major economies: Structural change or technology improvement?," Energy Economics, Elsevier, vol. 41(C), pages 47-62.
    3. Claire Brunel, 2017. "Pollution Offshoring and Emission Reductions in EU and US Manufacturing," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 68(3), pages 621-641, November.
    4. Mao, Jie & Wang, Chunhua & Yin, Haitao, 2023. "Corporate responses to air quality regulation: Evidence from a regional environmental policy in China," Regional Science and Urban Economics, Elsevier, vol. 98(C).
    5. Frédéric Branger & Oskar Lecuyer & Philippe Quirion, 2015. "The European Union Emissions Trading Scheme: should we throw the flagship out with the bathwater?," Wiley Interdisciplinary Reviews: Climate Change, John Wiley & Sons, vol. 6(1), pages 9-16, January.
    6. Michael Schymura & Andreas Löschel, 2012. "Trade and the Environment: An Application of the WIOD Database," EcoMod2012 3948, EcoMod.
    7. Wang, M. & Zhou, P., 2022. "A two-step auction-refund allocation rule of CO2 emission permits," Energy Economics, Elsevier, vol. 113(C).
    8. Forslid, Rikard, 2019. "Trade, Transportation and the Environment," CEPR Discussion Papers 14228, C.E.P.R. Discussion Papers.
    9. Stephen P. Holland & Erin T. Mansur & Nicholas Z. Muller & Andrew J. Yates, 2020. "Decompositions and Policy Consequences of an Extraordinary Decline in Air Pollution from Electricity Generation," American Economic Journal: Economic Policy, American Economic Association, vol. 12(4), pages 244-274, November.
    10. Pothen, Frank, 2017. "A structural decomposition of global Raw Material Consumption," Ecological Economics, Elsevier, vol. 141(C), pages 154-165.
    11. Sun, Xiaohua & Dong, Yan & Wang, Yun & Ren, Junlin, 2022. "Sources of greenhouse gas emission reductions in OECD countries: Composition or technique effects," Ecological Economics, Elsevier, vol. 193(C).
    12. Michel, Bernhard, 2013. "Does offshoring contribute to reducing domestic air emissions? Evidence from Belgian manufacturing," Ecological Economics, Elsevier, vol. 95(C), pages 73-82.
    13. Mulder, Peter & de Groot, Henri L.F. & Pfeiffer, Birte, 2014. "Dynamics and determinants of energy intensity in the service sector: A cross-country analysis, 1980–2005," Ecological Economics, Elsevier, vol. 100(C), pages 1-15.
    14. Zaim, Osman & Uygurtürk Gazel, Tuğçe & Akkemik, K. Ali, 2017. "Measuring energy intensity in Japan: A new method," European Journal of Operational Research, Elsevier, vol. 258(2), pages 778-789.
    15. LaPlue, Lawrence D., 2022. "Environmental consequences of natural gas wellhead pricing deregulation," Journal of Environmental Economics and Management, Elsevier, vol. 116(C).
    16. Arik Levinson, 2009. "Technology, International Trade, and Pollution from US Manufacturing," American Economic Review, American Economic Association, vol. 99(5), pages 2177-2192, December.
    17. Liao, Hua & Wei, Yi-Ming, 2010. "China's energy consumption: A perspective from Divisia aggregation approach," Energy, Elsevier, vol. 35(1), pages 28-34.
    18. Gilbert E. Metcalf, 2006. "Energy Conservation in the United States: Understanding its Role in Climate Policy," NBER Working Papers 12272, National Bureau of Economic Research, Inc.
    19. Carozzi, Felipe & Roth, Sefi, 2023. "Dirty density: Air quality and the density of American cities," Journal of Environmental Economics and Management, Elsevier, vol. 118(C).
    20. Trotta, Gianluca, 2020. "Assessing energy efficiency improvements and related energy security and climate benefits in Finland: An ex post multi-sectoral decomposition analysis," Energy Economics, Elsevier, vol. 86(C).

    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:eee:enepol:v:68:y:2014:i:c:p:603-607. 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.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with 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: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/enpol .

    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.