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The Effectiveness of the EU ETS Policy in Changing the Energy Mix in Selected European Countries

Author

Listed:
  • Małgorzata Błażejowska

    (Faculty of Economic Sciences, Koszalin University of Technology, 75-343 Koszalin, Poland)

  • Anna Czarny

    (Faculty of Economics, West Pomeranian University of Technology, 71-270 Szczecin, Poland)

  • Iwona Kowalska

    (Institute of Economics and Finance, Warsaw University of Life Sciences—SGGW, 02-787 Warsaw, Poland)

  • Andrzej Michalczewski

    (Doctoral School, University of Szczecin, 70-384 Szczecin, Poland)

  • Paweł Stępień

    (Institute of Economics and Finance, University of Szczecin, 71-101 Szczecin, Poland)

Abstract

In the field of economic analysis, the study of the EU ETS policy has primarily focused on the impact of renewable energy consumption on economic growth, as well as the role of legal and fiscal instruments in the development of clean energy. This study aimed to evaluate the effectiveness of the EU ETS policy in altering the energy mix of selected European countries, providing both cognitive and applicational value. The evaluation of the effectiveness of this policy focused on the structure of the energy mix and the relationship between rising CO 2 emission allowance prices and the decreasing share of coal in the energy mix. The goal was achieved through statistical analysis of secondary sources, primarily sourced from Bloomberg (2016–2024). The research findings indicated that changes in the structure of energy sources varied across the studied European countries, due to the adopted energy source utilization strategy, resource availability, and geopolitical situations. Additionally, different correlation values were noted between rising CO 2 emission allowance prices and the expected reduction in fossil fuel use. Therefore, the EU ETS policy does not fulfill its assigned role—its implementation contributes to disparities in the economic situations of European economies and creates conditions for unequal competition.

Suggested Citation

  • Małgorzata Błażejowska & Anna Czarny & Iwona Kowalska & Andrzej Michalczewski & Paweł Stępień, 2024. "The Effectiveness of the EU ETS Policy in Changing the Energy Mix in Selected European Countries," Energies, MDPI, vol. 17(17), pages 1-21, August.
    • Handle: RePEc:gam:jeners:v:17:y:2024:i:17:p:4243-:d:1463666
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    References listed on IDEAS

    as
    1. Aurelia Rybak & Aleksandra Rybak & Jarosław Joostberens, 2023. "The Impact of Removing Coal from Poland’s Energy Mix on Selected Aspects of the Country’s Energy Security," Sustainability, MDPI, vol. 15(4), pages 1-13, February.
    2. Hammoudeh, Shawkat & Nguyen, Duc Khuong & Sousa, Ricardo M., 2014. "Energy prices and CO2 emission allowance prices: A quantile regression approach," Energy Policy, Elsevier, vol. 70(C), pages 201-206.
    3. Bin Xiong & Qi Sui, 2023. "Does Carbon Emissions Trading Policy Improve Inclusive Green Resilience in Cities? Evidence from China," Sustainability, MDPI, vol. 15(17), pages 1-16, August.
    4. Segnon, Mawuli & Lux, Thomas & Gupta, Rangan, 2017. "Modeling and forecasting the volatility of carbon dioxide emission allowance prices: A review and comparison of modern volatility models," Renewable and Sustainable Energy Reviews, Elsevier, vol. 69(C), pages 692-704.
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