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Sectoral and regional impacts of the European Carbon Market in Portugal

Author

Listed:
  • Margarita Robaina Alves

    (Universidade de Aveiro)

  • Miguel Rodríguez

    (Facultade Empresariais e Turismo, 32004 Ourense, Spain)

  • Catarina Roseta-Palma

    (Department of Economics and ERC-UNIDE, ISCTE-Lisbon University Institute)

Abstract

Across Europe, CO2 emission permits represent one of the main policy instruments to comply with the limits established by the European Commission to achieve the goals of the Kyoto Protocol. In this paper we use microdata to address two issues regarding the impact of the European Carbon Market (EU ETS). On the one hand, we analyse the sectoral effects of the EU ETS in Portugal. The main goal is to study the outcomes of this policy in terms of the transactions carried out between sectors, as well as the distributive consequences. On the other hand, we also look at the regional impact. The pre-existing specialization of different regions in the production of different goods and services might lead to an uneven economic impact of the new permit market. In particular, Portuguese data indicate a distribution of revenue from low income to high income regions, or rather, between installations located in those regions. We focus on the first two years of operation of the EU ETS, using data for each one of the 244 Portuguese installations regulated by this market as well as financial data for 80% of these installations

Suggested Citation

  • Margarita Robaina Alves & Miguel Rodríguez & Catarina Roseta-Palma, 2010. "Sectoral and regional impacts of the European Carbon Market in Portugal," GEE Papers 0021, Gabinete de Estratégia e Estudos, Ministério da Economia, revised Jul 2010.
    • Handle: RePEc:mde:wpaper:0021
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    References listed on IDEAS

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    Cited by:

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    2. João Amador, 2022. "Energy mix and intensity in Portugal: Portraits from aggregate and firm-level data," Economic Bulletin and Financial Stability Report Articles and Banco de Portugal Economic Studies, Banco de Portugal, Economics and Research Department.
    3. Moutinho, Victor & Robaina-Alves, Margarita & Mota, Jorge, 2014. "Carbon dioxide emissions intensity of Portuguese industry and energy sectors: A convergence analysis and econometric approach," Renewable and Sustainable Energy Reviews, Elsevier, vol. 40(C), pages 438-449.

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    More about this item

    Keywords

    Regional impact; sectoral impact; tradable CO2 permits; European Carbon Market.;
    All these keywords.

    JEL classification:

    • Q48 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Government Policy
    • Q52 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Pollution Control Adoption and Costs; Distributional Effects; Employment Effects
    • R38 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Government Policy

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