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On the CO2 Emissions Determinants During the EU ETS Phases I and II: A Plant-level Analysis Merging the EUTL and Platts Power Data

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  • Benoît Chèze, Julien Chevallier, Nicolas Berghmans, and Emilie Alberola

Abstract

This article studies ex-post the CO2 emissions determinants during 2005ý2012 by resorting to an original database merging the European Union Transaction Log (EUTL) with the World Electric Power Plants (WEPP) database maintained by Platts. We estimate the main drivers of CO2 emissions for the 1,453 power plants included in the EU ETS using plant-level panel data. During phases I and II, there has been a debate about whether the economic crisis was ultimately the only factor behind the fall in CO2 emissions. We find that the EU ETS kept some degree of effectiveness but only during phase I (2005ý07). During phase II (2008ý12), its impact has been largely impeded by the deep economic recession in 2008ý2009 which became the leading cause of the emissions reduction. We disentangle the analysis not only by periods but also for each type of power plants. We conclude that the EU Commissionýs flagship climate policy could and should be enhanced by better coordination of overlapping climate policies.

Suggested Citation

  • Benoît Chèze, Julien Chevallier, Nicolas Berghmans, and Emilie Alberola, 2020. "On the CO2 Emissions Determinants During the EU ETS Phases I and II: A Plant-level Analysis Merging the EUTL and Platts Power Data," The Energy Journal, International Association for Energy Economics, vol. 0(Number 4), pages 153-184.
    • Handle: RePEc:aen:journl:ej41-4-chevallier
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    Cited by:

    1. Liao, Ling & Diaz-Rainey, Ivan & Kuruppuarachchi, Duminda & Gehricke, Sebastian, 2023. "The role of fundamentals and policy in New Zealand's carbon prices," Energy Economics, Elsevier, vol. 124(C).
    2. Flori, Andrea & Scotti, Francesco, 2025. "When the intensity of trading meets compliance requirements: An assessment for firms operating within the EU ETS," Energy Economics, Elsevier, vol. 147(C).
    3. Simon Quemin, 2020. "Using Supply-Side Policies to Raise Ambition: The Case of the EU ETS and the 2021 Review," Working Papers 2002, Chaire Economie du climat.
    4. Dunbar, Kwamie & Treku, Daniel N., 2025. "Do energy transition investment flows aid climate commitments?," Energy Economics, Elsevier, vol. 142(C).
    5. Quemin, Simon & Trotignon, Raphaël, 2021. "Emissions trading with rolling horizons," Journal of Economic Dynamics and Control, Elsevier, vol. 125(C).
    6. Mamkhezri, Jamal, 2025. "Assessing price elasticity in US residential electricity consumption: A comparison of monthly and annual data with recession implications," Energy Policy, Elsevier, vol. 200(C).
    7. Pilar Gargallo & Luis Lample & Jesús A. Miguel & Manuel Salvador, 2021. "Co-Movements between Eu Ets and the Energy Markets: A Var-Dcc-Garch Approach," Mathematics, MDPI, vol. 9(15), pages 1-36, July.
    8. Andrea Flori & Alessandro Spelta, 2025. "Carbon trade biases and the emerging mesoscale structure of the European Emissions Trading System network," Nature Communications, Nature, vol. 16(1), pages 1-17, December.
    9. Hassan, Mahmoud & Kouzez, Marc & Lee, Ji-Yong & Msolli, Badreddine & Rjiba, Hatem, 2024. "Does increasing environmental policy stringency enhance renewable energy consumption in OECD countries?," Energy Economics, Elsevier, vol. 129(C).
    10. Eslahi, Ethan & Creti, Anna & Sanin, María-Eugenia, 2025. "Signal received? Carbon price and financial–environmental performance prioritization in EU ETS firms," International Review of Financial Analysis, Elsevier, vol. 105(C).
    11. Lessmann, Christian & Kramer, Niklas, 2024. "The effect of cap-and-trade on sectoral emissions: Evidence from California," Energy Policy, Elsevier, vol. 188(C).
    12. Kramer, Niklas & Lessmann, Christian, 2023. "The Effects of Carbon Trading: Evidence from California’s ETS," MPRA Paper 116796, University Library of Munich, Germany.
    13. M. Hassan & M. Kouzez & J. Y. Lee & B. Msolli & H. Rjibae, 2024. "Does Increasing Environmental Policy Stringency Enhance Renewable Energy Consumption in OECD Countries?," Post-Print hal-04350282, HAL.
    14. Keppler, Jan Horst & Quemin, Simon & Saguan, Marcelo, 2022. "Why the sustainable provision of low-carbon electricity needs hybrid markets," Energy Policy, Elsevier, vol. 171(C).
    15. Flori, Andrea & Borghesi, Simone & Marin, Giovanni, 2024. "The environmental-financial performance nexus of EU ETS firms: A quantile regression approach," Energy Economics, Elsevier, vol. 131(C).
    16. Chiappari, Mattia & Scotti, Francesco & Flori, Andrea, 2025. "Hedging financial risks with a climate index based on EU ETS firms," Energy, Elsevier, vol. 320(C).
    17. Quemin, Simon, 2022. "Raising climate ambition in emissions trading systems: The case of the EU ETS and the 2021 review," Resource and Energy Economics, Elsevier, vol. 68(C).

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    JEL classification:

    • F0 - International Economics - - General

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