Bayer, Patrick, and Michaël Aklin. The European Union emissions trading system reduced CO2 emissions despite low prices. Proceedings of the National Academy of Sciences 117.16 (2020)
Objective:
- Draw aon sectoral emissions data to answer whether carbon markets are effective in international settings
Case:
- EU
Methodology:
- OLS
- Synthetic control
Data Source
- EU sectoral emission data: EU ETS EUTL and National Emissions Report
Findings:
- A decrease of CO2 emissions in ETS sectors of between 8.1 and 11.5%
- EU ETS contributed substantially to the EU’s efforts to decarbonize its economies despite low carbon prices
