The EU ETS and firm profits: an ex-post analysis for Swedish energy firms
2013 (English)In: Environmental Economics, ISSN 1998-6041, Vol. 4, no 3, 59-71 p.Article in journal (Refereed) Published
In January, 2005, the EU launched the first international emissions trading system (EU ETS), aimed at reducing carbon emissions in a cost-effective way by means of a market-based instrument. In this paper, we use the treatment/control, before/after design of the natural experiment approach to investigate the treatment effect of the EU ETS on the profitability of a sample of Swedish energy firms in 2005 and 2006. We also investigate whether under-cap and over-cap firms respond differently to the EU ETS. The estimation results in general suggest no significant impact in 2005 and a negative significant impact in 2006. The sub-sample analysis suggests that profitability of under-cap and over-cap firms were affected differently by the EU ETS in 2005, but not in 2006.
Place, publisher, year, edition, pages
2013. Vol. 4, no 3, 59-71 p.
IdentifiersURN: urn:nbn:se:uu:diva-222281OAI: oai:DiVA.org:uu-222281DiVA: diva2:711162