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

  • Jarait, Jurate

    ()

    (CERE, Umeå University)

  • Di Maria, Corrado

    (University of East Anglia)

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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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
Contact details of provider: Web page: http://www.cere.se

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  1. Marco Caliendo & Sabine Kopeinig, 2005. "Some Practical Guidance for the Implementation of Propensity Score Matching," Discussion Papers of DIW Berlin 485, DIW Berlin, German Institute for Economic Research.
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  8. Widerberg, Anna & Wråke, Markus, 2009. "The Impact of the EU Emissions Trading System on CO2 Intensity in Electricity Generation," Working Papers in Economics 361, University of Gothenburg, Department of Economics.
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  12. Jeffrey Smith & Petra Todd, 2003. "Does Matching Overcome Lalonde's Critique of Nonexperimental Estimators?," University of Western Ontario, CIBC Centre for Human Capital and Productivity Working Papers 20035, University of Western Ontario, CIBC Centre for Human Capital and Productivity.
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  24. repec:cup:cbooks:9780521196475 is not listed on IDEAS
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