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The Sustainability Impact of the EU Emissions Trading System on the European Industry


Author Info

  • bleischwitz, raimund
  • fuhrmann, katrin
  • huchler, elias


This BEEP explains the mechanism of the EU Emissions Trading System (ETS) for the greenhouse gas carbon dioxide and explore into its likely sustainability impact on European industry. In doing so, it focuses on energy-intensive indus-tries like cement, steel and aluminium production as well as on the emerging hy-drogen economy. The BEEP concludes that at the moment it is still very inconsis-tently implemented and has a fairly narrow scope regarding greenhouse gases and involved sectors. It may also give an incentive to relocate for energy-intensive industries. In its current format, the EU ETS does not yet properly facilitate long term innovation dynamics such as the transition to a hydrogen economy. Nevertheless, the EU ETS is foremost a working system that – with some improvements – has the potential to become a pillar for effective and efficient climate change policy that also gives incentives for investment into climate friendly policies.

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Bibliographic Info

Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 14519.

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Date of creation: Jun 2007
Date of revision: Sep 2007
Handle: RePEc:pra:mprapa:14519

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Keywords: emissions trading; EU; sustainability;

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References listed on IDEAS
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  1. Alfred Endres & Cornelia Ohl, 2005. "Kyoto, Europe?—An Economic Evaluation of the European Emission Trading Directive," European Journal of Law and Economics, Springer, Springer, vol. 19(1), pages 17-39, January.
  2. Bleischwitz, Raimund & Fuhrmann, Katrin, 2006. "Introduction to the special issue on `hydrogen' in `Energy Policy'," Energy Policy, Elsevier, Elsevier, vol. 34(11), pages 1223-1226, July.
  3. Luis Rubalcaba, 2007. "Services in European Policies," Bruges European Economic Policy Briefings, European Economic Studies Department, College of Europe 16, European Economic Studies Department, College of Europe.
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Cited by:
  1. Mirzha de Manuel Armendía, 2011. "Market Efficiency in the EU Emissions Trading Scheme. An outlook for the third trading period," Bruges European Economic Research Papers, European Economic Studies Department, College of Europe 20, European Economic Studies Department, College of Europe.
  2. Bleischwitz, Raimund & Bader, Nikolas, 2010. "Policies for the transition towards a hydrogen economy: the EU case," Energy Policy, Elsevier, Elsevier, vol. 38(10), pages 5388-5398, October.
  3. Raimund Bleischwitz & Nicolas Bader, 2008. "The Policy Framework for the Promotion of Hydrogen and Fuel Cells in Europe: A Critical Assessment," Bruges European Economic Policy Briefings, European Economic Studies Department, College of Europe 19, European Economic Studies Department, College of Europe.


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