Projects per year
Abstract
Significance International carbon markets are an appealing and increasingly popular tool to regulate carbon emissions. They put a price on carbon emissions and make pollution less attractive for regulated firms. However, carbon markets often produce prices which are deemed too low relative to the social cost of carbon. We argue that despite low prices, carbon markets can help reduce emissions. Using a statistical model and sectoral emissions data, we find that the EU ETS, which initially regulated roughly 50% of EU carbon emissions from mainly energy production and large industrial polluters, saved more than 1 billion tons of CO 2 between 2008 and 2016. This translates to reductions of 3.8% of total EU-wide emissions compared to a world without the EU ETS.
Original language | English |
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Pages (from-to) | 8804-8812 |
Number of pages | 9 |
Journal | Proceedings of the National Academy of Sciences |
Volume | 117 |
Issue number | 16 |
Early online date | 6 Apr 2020 |
DOIs | |
Publication status | Published - 21 Apr 2020 |
Keywords
- carbon markets
- EU ETS
- policy evaluation
- synthetic control
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Dive into the research topics of 'The European Union emissions trading system reduced CO2 emissions despite low prices'. Together they form a unique fingerprint.Projects
- 1 Finished
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The Effectiveness of Carbon Markets in Europe, 2005-2012
Bayer, P. (Principal Investigator) & Aklin, M. (Co-investigator)
1/01/18 → 31/03/19
Project: Projects from Previous Employment
Datasets
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European Union Sectoral Emissions Data (EUSED): Data and Codebook
Bayer, P. (Creator), Harvard Dataverse, 6 Feb 2020
DOI: 10.7910/DVN/DW7Y5W, https://dataverse.harvard.edu/dataverse/eused
Dataset
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Replication Data for: "The European Union Emissions Trading System reduced CO2 emissions despite low prices"
Bayer, P. (Creator), Harvard Dataverse, 15 Apr 2020
DOI: 10.7910/DVN/R4LJIT
Dataset
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Interview with FORESIGHT Climate & Energy about carbon markets and climate finance
Bayer, P. (Interviewee)
13 Sept 2022Activity: Public Engagement and Outreach › Media Participation
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Participation in workshop, BEIS
Bayer, P. (Participant)
9 Jun 2022Activity: Public Engagement and Outreach › Media Participation
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Participation in workshop, BEIS
Bayer, P. (Participant)
11 May 2022Activity: Public Engagement and Outreach › Media Participation