How Does the European Union’s Carbon Market Impact Firm Productivity?

The European Union Emissions Trading System (EU ETS) was created in 2005 to reduce greenhouse gas emissions from emitting sectors in the EU. Its impact on productivity is unclear, however, as it imposes constraints on production processes. This paper shows that the EU ETS was not detrimental to firm productivity from 2005 to 2017, despite heterogeneous effects depending on factors such as a firm’s... Lire la suite


European Union's Emissions Trading System and Productivity: Firm-Level Evidence for France, Italy and Spain

This working paper seeks to study the effect of the European Union Emissions Trading System on total factor productivity for manufacturing firms in France, Italy and Spain, from 2000 to 2017. As a general rule, the instrument is not found to be detrimental to regulated firms’ productivity. However, firms have reacted differently depending on their initial efficiency, size, financial constraints, s... Lire la suite