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Did the EU ETS make a difference? An empirical assessment using Lithuanian firm-level data

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Author Info

  • Jarait, Jurate

    ()
    (CERE, Umeå University)

  • Di Maria, Corrado

    (University of East Anglia)

Abstract

We use a panel dataset of about 5,000 Lithuanian firms between 2003 and 2010, to assess the impact of the EU ETS on the environmental and economic performance of participating firms. Using a matching methodology, we are able to estimate the causal impact of EU ETS participation on CO2 emissions, CO2 intensity, investment behaviour and profitability of participating firms. Our results show that ETS participation did not lead to a reduction in CO2 emissions, while we identify a slight improvement in CO2 intensity. ETS participants are shown to have retired part of their less efficient capital stock, and to have made modest additional investments from 2010. We also show that the EU ETS did not represent a drag on the profitability of participating firms.

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File URL: http://www.cere.se/documents/wp/2014/CERE_WP2014-2.pdf
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Bibliographic Info

Paper provided by CERE - the Center for Environmental and Resource Economics in its series CERE Working Papers with number 2014:2.

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Length: 41 pages
Date of creation: 21 Jan 2014
Date of revision:
Handle: RePEc:hhs:slucer:2014_002

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Web page: http://www.cere.se

Related research

Keywords: Cap and trade; CO2 emissions; EU emissions trading system; ex-post evaluation; firm competitiveness; investment; matching; panel data; profits;

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References

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