EU ETS and Investment Decisions:: The Case of the German Electricity Industry
In 2005, the EU launched the European Emission Trading Scheme (EU ETS) to reduce CO2 emissions and spur low carbon investments. There is only little empirical evidence regarding its actual effects on corporate investment decisions. We investigate these effects in case studies in the German electricity sector. We find that companies in the sector integrate costs for CO2 in their investment decisions. The EU ETS constitutes a main driver for small-scale investments with short amortization times. Its impact on large-scale investments in power plants or in R&D efforts is limited. To overcome this weakness, policy makers should reflect their long-term reduction intentions in the scarcity of allowances, provide more incentives to increase efficiency, and reduce regulatory uncertainty.
If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Volume (Year): 25 (2007)
Issue (Month): 6 (December)
|Contact details of provider:|| Web page: http://www.elsevier.com/wps/find/journaldescription.cws_home/115/description#description|
|Order Information:|| Postal: http://www.elsevier.com/wps/find/journaldescription.cws_home/115/bibliographic|
When requesting a correction, please mention this item's handle: RePEc:eee:eurman:v:25:y:2007:i:6:p:464-474. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Shamier, Wendy)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.