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The Impacts Of The Eu Ets On Norwegian Plants’ Environmental And Economic Performance

Author

Listed:
  • MARIT KLEMETSEN

    (CICERO Center for International Climate Research, Norway2Statistics Norway, Norway)

  • KNUT EINAR ROSENDAHL

    (Statistics Norway, Norway3Norwegian University of Life Sciences, Norway)

  • ANJA LUND JAKOBSEN

    (Norwegian University of Life Sciences, Norway)

Abstract

This paper examines the impacts of the EU Emissions Trading System (ETS) on the environmental and economic performance of Norwegian plants. The ETS is regarded as the cornerstone climate policy in the EU and Norway, but there has been considerable debate regarding its effects due to low quota prices and substantial allocation of free allowances. The rich data allow us to investigate potential effects of the ETS on several important aspects of plant behavior. The results indicate a weak tendency of emissions reductions among Norwegian plants in the second phase of the ETS, but not in the other phases. We find no significant effects on emissions intensity in any of the phases, but positive effects on value added and productivity in the second phase. These positive effects may be due to the large amounts of free allowances, and that plants may have passed on additional marginal costs to consumers.

Suggested Citation

  • Marit Klemetsen & Knut Einar Rosendahl & Anja Lund Jakobsen, 2020. "The Impacts Of The Eu Ets On Norwegian Plants’ Environmental And Economic Performance," Climate Change Economics (CCE), World Scientific Publishing Co. Pte. Ltd., vol. 11(01), pages 1-32, February.
    • Handle: RePEc:wsi:ccexxx:v:11:y:2020:i:01:n:s2010007820500062
    DOI: 10.1142/S2010007820500062
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    More about this item

    Keywords

    Tradable emissions quotas; emissions intensity; productivity; propensity score matching; difference-in-differences;
    All these keywords.

    JEL classification:

    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • C54 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Quantitative Policy Modeling
    • D22 - Microeconomics - - Production and Organizations - - - Firm Behavior: Empirical Analysis
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming
    • Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy

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