Effects of the EU ETS on firm investments
The EU ETS is designed to be a central pillar in EU efforts to cut emissions and drive investments in low emitting technologies. Expectations are high, but so far little empirical evidence exist that can support these expectations in the EU context. As the EU moves to broaden the coverage of the scheme and reach deeper cuts in emissions, empirical research that can support a pragmatic yet scientifically sound design of the trading scheme is highly needed. The research will assess to what extent the EU ETS has affected firm behavior with regard to investments in environmentally friendly technologies and energy efficiency. We will use empirical data from in the Swedish steel-, energy-, chemical- and pulp and paper industries, and compare periods before and after the EU ETS was launched.
