Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/192815
Authors: 
Klemetsen, Marit E.
Rosendahl, Knut Einar
Jakobsen, Anja Lund
Year of Publication: 
2016
Series/Report no.: 
Discussion Papers No. 833
Abstract: 
This paper examines the impacts of the EU Emissions Trading System (ETS) on the environmental and economic performance of Norwegian plants. The EU ETS is regarded as the cornerstone climate policy both in the EU and in Norway, but there has been considerable debate regarding its effects due to low quota prices and substantial allocation of free allowances to the manufacturing industry. Both quota prices and allocation rules have changed significantly between the three phases of the ETS. The rich data allow us to investigate potential effects of the ETS on several important aspects of plant behavior. The results indicate a weak tendency of emissions reductions among Norwegian plants in the second phase of the ETS, but not in the other phases. We find no significant effects on emissions intensity in any of the phases, but positive effects on value added and productivity in the second phase. Positive effects on value added and productivity may be due to the large amounts of free allowances, and that plants may have passed on the additional marginal costs to consumers.
Subjects: 
Tradable emissions quotas
emissions intensity
productivity
propensity score matching
difference-in-differences
JEL: 
C23
C54
D22
Q54
Q58
Document Type: 
Working Paper

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