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The School carries out applied research with the purpose of developing economically, legally, and socially-sound regulation and policy, using a multidisciplinary approach.

Should I offset or should I plough? : voluntary carbon offsets and ETS in an evolutionary model

Companies with high emissions can offset their climate impact by participating in emission reduction projects through voluntary carbon markets (VCMs) in several countries. Firms...

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Matteo Mazzarano Simone Borghesi MR SV
Article
The regulatory framework for independent aggregators
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Policy Paper
A framework for electricity grid data exchange and reuse for AI foundation models : reflections on five implementation aspects
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Article

The impact of the EU emissions trading system on competitiveness and carbon leakage : the econometric evidence

This paper carefully surveys the econometric literature that tests for competitiveness effects and related carbon leakage caused by the EU Emissions Trading System (EU ETS). The results of this literature tell us that to date there is no evidence of the EU ETS having had widespread negative or positive effects on the competitiveness of regulated firms, nor is there evidence of significant carbon leakage. However, the paper also identifies three important caveats to this general conclusion. Firstly, the evidence we have still largely refers to the first two trading periods, namely Phases I (2005–2007) and II (2008–2012). Secondly, some heterogeneity of estimated effects is observed, but patterns, notably sectoral patterns, hardly emerge. Thirdly, very little explored is whether the EU ETS has had long‐term effects on the economy via investment leakage or firm dynamics. Further empirical studies investigating these long‐term effects are particularly desirable.

VERDE, Stefano F., The impact of the EU emissions trading system on competitiveness and carbon leakage : the econometric evidence, Journal of economic surveys, 2020. Vol. 34, No. 2, pp. 320-343 - hdl.handle.net

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