INDEK researcher granted 5.1 million SEK for project about CO2 emissions
New grant worth SEK 5.1 million by Marianne and Marcus Wallenbergs Stiftelse for the project"Impact of the EU Emissions Trading System on firm behavior and CO2 emissions".
About the project
Man-made climate change is the most pressing challenge in our quest to reach a sustainable society and represents a massive market failure in need of policy intervention. Carbon pricing is often emphasized as one of the most important policy tools for achieving decarbonization and create a more sustainable growth path for the economy. Still, there is a paucity of comprehensive empirical evidence on whether, and if so, to what extent, carbon pricing affects firm behavior and most notably carbon dioxide (CO2) firm-level emissions. In this project, we examine the impact of the EU Emissions Trading System (EU ETS), the largest carbon pricing market in the world, on plant and firm-level emissions, performance and technical change by utilizing and expanding on a unique dataset of plant and firm level outcomes.