Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/53391 
Year of Publication: 
2011
Series/Report no.: 
Nota di Lavoro No. 19.2011
Publisher: 
Fondazione Eni Enrico Mattei (FEEM), Milano
Abstract: 
This study uses the EU public power generating sector as a case study to investigate the environmental efficiency and productivity enhancing performance of the European Union's CO2 Emissions Trading Scheme (EU ETS) in its pilot phase. Using Data Envelopment Analysis methods, we measure the environmental efficiency and the productivity growth registered in public power generation across the EU over the 1996-2007 period. In the second stage of our analysis we attempt to explain changes in productivity and efficiency over time using state-of-the-art econometric techniques. Our analysis suggests two conclusions: on the one hand carbon pricing led to an increase in environmental efficiency and to a shift outwards of the technological frontier; on the other hand, the overly generous allocation of emission permits had a negative impact on both measures. These results are shown to be robust to changes in controls and specifications.
Subjects: 
Emissions Trading
EU ETS
Environmental Efficiency
Productivity Growth
Data Envelopment Analysis
JEL: 
O38
Q48
Q58
Document Type: 
Working Paper

Files in This Item:
File
Size
388.36 kB





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.