- Toulouse School of Economics
mercoledì 30 maggio 2018
Polo Santa Marta, Via Cantarane 24, Sala Vaona
In the Kyoto Protocol framework, the EU committed itself to reducing its greenhouse
gas (GHG) emissions by 20 percent until 2020 compared with 1990 levels. One of the main
policies adopted to fulfill this goal is the European Union Emission Trading System (EU
ETS): a cap-and-trade scheme for GHG emission allowances. In this project, we exploit
the introduction of the ETS and its institutional changes to provide evidence of the causal
impact of this European policy on firms' outcomes, disentangling the effects on profitability
and productivity. This study is based on an original and comprehensive database of Italian
manufacturing plants gathering data on EU ETS obligations and exchanged allowances,
revenues, labor, polluting emissions and financial data.
The empirical analysis combines robust and recent techniques for public policy evaluation
with structural estimation of firms' production function. Preliminary results show a positive
effect of the policy on productivity and heterogeneous effects among sectors.