Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/82608
Authors: 
Yu, Haisan
Year of Publication: 
2011
Series/Report no.: 
Working Paper, Department of Economics, Uppsala University 2011:2
Abstract: 
In January, 2005, the EU launched the first international emissions trading system (EU ETS), aimed at reducing carbon emissions in a cost-effective way by means of a market-based instrument. In this paper, we use the treatment/control, before/after design of the natural experiment approach to investigate the treatment effect of the EU ETS on the profitability of a sample of Swedish energy firms in 2005 and 2006. We also investigate whether under-cap and over-cap firms respond differently to the EU ETS. The estimation results in general suggest no significant impact in 2005 and a negative significant impact in 2006. The sub-sample analysis suggests that profitability of under-cap and over-cap firms were affected differently by the EU ETS in 2005, but not in 2006.
Subjects: 
EU ETS
difference-in-differences
fixed effect
JEL: 
D22
Q50
Q58
Persistent Identifier of the first edition: 
Document Type: 
Working Paper

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