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Carbon Leakage and the EU Emissions Trading System

Kindmark, Ingeborg LU (2023) NEKH02 20222
Department of Economics
Abstract
This essay investigates carbon leakage in connection to the EU Emissions Trading System. That is, the act of companies moving their emissions from the EU to areas with laxer environmental standards, in order to avoid compliance costs associated with the implementation of emissions trading. The investigated time period is between 2005-2020. A regression model was created, regressing total country emissions on imports, GDP per capita, population size, point in time and EU-membership. The results are inconclusive and thus give no answer to whether carbon leakage from the EU has been present within the given time frame. Further research is needed, and could for instance target specific phases of the EU ETS or compare analyses from before and... (More)
This essay investigates carbon leakage in connection to the EU Emissions Trading System. That is, the act of companies moving their emissions from the EU to areas with laxer environmental standards, in order to avoid compliance costs associated with the implementation of emissions trading. The investigated time period is between 2005-2020. A regression model was created, regressing total country emissions on imports, GDP per capita, population size, point in time and EU-membership. The results are inconclusive and thus give no answer to whether carbon leakage from the EU has been present within the given time frame. Further research is needed, and could for instance target specific phases of the EU ETS or compare analyses from before and after higher regulation levels were implemented. (Less)
Please use this url to cite or link to this publication:
author
Kindmark, Ingeborg LU
supervisor
organization
course
NEKH02 20222
year
type
M2 - Bachelor Degree
subject
keywords
Carbon leakage, EU Emissions Trading System, environmental economics
language
English
id
9111486
date added to LUP
2023-05-29 12:02:20
date last changed
2023-05-29 12:02:20
@misc{9111486,
  abstract     = {{This essay investigates carbon leakage in connection to the EU Emissions Trading System. That is, the act of companies moving their emissions from the EU to areas with laxer environmental standards, in order to avoid compliance costs associated with the implementation of emissions trading. The investigated time period is between 2005-2020. A regression model was created, regressing total country emissions on imports, GDP per capita, population size, point in time and EU-membership. The results are inconclusive and thus give no answer to whether carbon leakage from the EU has been present within the given time frame. Further research is needed, and could for instance target specific phases of the EU ETS or compare analyses from before and after higher regulation levels were implemented.}},
  author       = {{Kindmark, Ingeborg}},
  language     = {{eng}},
  note         = {{Student Paper}},
  title        = {{Carbon Leakage and the EU Emissions Trading System}},
  year         = {{2023}},
}