Assessing the impact of the EU ETS using firm level data

This paper investigates the impact of the European Unionâ??s Emission Trading System (EU ETS) at a firm level. Using panel data on the emissions and performance of more than 2000 European firms from 2005 to 2008, we are able to analyse the effectiveness of the scheme. The results suggest that the shift from the first phase (2005-2007) to the second phase (2008-2012) had an impact on the emission reductions carried out by firms. The initial allocation also had a significant impact on emission reduction. This challenges the relevance for the ETS of Coaseâ??s theorem (Coase, 1969), according to which the initial allocation of permits is irrelevant for the post-trading allocation of marketable pollution permits. Finally, we found that the EU ETS had a modest impact on the participating companiesâ?? performance. We conclude that a full auctioning system could help to reduce emissions but could also have a negative impact on the profits of participating companies.

Assessing the impact of the EU ETS using firm level data.

· This paper investigates the impact of the European Union’s Emission Trading System (EU ETS) at a firm level. Using panel data on the emissions and performance of more than 2000 European firms from 2005 to 2008, we are able to analyse the effectiveness of the scheme. · The results suggest that the shift from the first phase (2005-2007) to the second phase (2008-2012) had an impact on the emission reductions carried out by firms. The initial allocation also had a significant impact on emission reduction. This challenges the relevance for the ETS of Coase’s theorem (Coase, 1969), according to which the initial allocation of permits is irrelevant for the post-trading allocation of marketable pollution permits. · Finally, we found that the EU ETS had a modest impact on the participating companies’ performance. We conclude that a full auctioning system could help to reduce emissions but could also have a negative impact on the profits of participating companies.panel data, energy, climate change, evaluation econometrics, firm behaviour.

Inequality decomposition using the Gibbs output of a Mixture of lognormal distributions

In this paper we model the income distribution using a Bayesian approach and a mixture of lognormal densities. The size of the mixture is determined by Chib (1995)'s method. Using the Federal Expenditure Survey data for the United Kingdom, we detect three groups corresponding to the three classes (poor, middle class and rich). The marked growth in UK income inequality during the late 1970s is increasingly attracting attention. The increasing gap between the poorest and the richest was accompanied by changes in the clustering of incomes in between. Using the decomposable Generalised Entropy (GE) inequality indices, we carry out a within-between group analysis of income inequality in the three identified groups in UK during 1979 to 1996 and show the evolution of the importance of each group. Whereas during the late 1970s the concentration of people around middle income levels began to break up and polarise towards high and low incomes as shown by Jenkins (1996), our Bayesian results show that the inequality within the low and middle income group do not change much and the importance of the high income is the most affected by the fight against inequality that followed the Thatcher period.Income distribution; Generalised Entropy; Mixture models; Gibbs sampler; Marginal likelihood

Inequality decomposition using the Gibbs output of a Mixture of lognormal distributions

In this paper we model the income distribution using a Bayesian approach and a mixture of lognormal densities. The size of the mixture is determined by Chib (1995)'s method. Using the Federal Expenditure Survey data for the United Kingdom, we detect three groups corresponding to the three classes (poor, middle class and rich). The marked growth in UK income inequality during the late 1970s is increasingly attracting attention. The increasing gap between the poorest and the richest was accompanied by changes in the clustering of incomes in between. Using the decomposable Generalised Entropy (GE) inequality indices, we carry out a within-between group analysis of income inequality in the three identified groups in UK during 1979 to 1996 and show the evolution of the importance of each group. Whereas during the late 1970s the concentration of people around middle income levels began to break up and polarise towards high and low incomes as shown by Jenkins (1996), our Bayesian results show that the inequality within the low and middle income group do not change much and the importance of the high income is the most affected by the fight against inequality that followed the Thatcher period

Inheritance of fresh seed dormancy in Spanish-type peanut (Arachis hypogaea L.): Bias introduced by inadvertent selfed flowers as revealed by microsatellite markers control

Production and seed quality in peanut (Arachis hypogaea L.) can be reduced substantially by in situ germination under unpredictable rainfed environments. Inheritance of fresh seed dormancy in Spanish x Spanish crosses was studied with two sets of segregating populations, an F2 population derived from true F1 hybrids identified with peanut microsatellites markers and other populations (F2, BC1P1S and BC1P2S) from randomly-selected F1 individuals. In the F2 population developed with true F1 hybrids, the chi square test was not significant for the deviation from the expected 3:1 (dormant: non-dormant) ratio. In addition, the bimodal frequency distribution curve with the F2 population gave more evidence that fresh seed dormancy is controlled by a single dominant gene. The average frequency (48%) of true F1 hybrids give evidence that deviations from expected ratios in the populations (F2 and BC1P1S) developed from non-tested F1 individuals, is most likely due to inadvertent selfs. This study emphasized the need to identify with molecular markers the cross progenies in self-pollinated crops as peanut before testing for any trait. (Résumé d'auteur

The great transformation: decarbonising Europeâ??s energy and transport systems

The euro-area crisis dominates the economic news. Yet, the world and Europe may face even more important challenges that will shape our lives and the lives of our children.World population is projected to increase to 9 billion or more by 2050. At the same time, current trends indicate an increase in living standards and a growing middle class around the world. These two mega-trends will have profound implications, and the way they are managed will be one of the key determinants of prosperity and peace in the decades or even centuries to come. A number of factors are important in this respect. More people and more income will increase the global demand for energy. Choosing the right sources of this energy will be one of the determining factors of global temperature. The continued reliance on fossil-fuel energy sources is one of the main factors behind the risk of significant global temperature increases. The internationally agreed goal of limiting the temperature rise to less than two degrees Celsius above pre-industrial levels appears increasingly illusory. Currently, fossil energy sources dominate many economic areas. For instance, our transport infrastructure is largely based on fossil fuels, and is thereby one of the main contributor of the carbon dioxide emissions that are linked to global temperature. Thinking about a decarbonisation strategy is therefore a key challenge with a global dimension. Economic growth in Europe will be affected by the costs of this transition from the current energy and transport system. A smooth transition towards a low-carbon energy and transport system could come at comparatively modest cost. Furthermore, identifying the most economically beneficial solutions early on and becoming a global technology leader and standard setter offers vast opportunities for exports and economic growth. Hence, our decarbonisation strategy may eventually have a greater impact on long-term European growth than the current economic crisis. Bruegel is contributing to this debate with this report, which is based on research that received funding from the Fuel Cell and Hydrogen Joint Undertaking. The authors argue carefully that to make decarbonisation growth friendly, a consistent policy approach is needed. Policy intervention appears indispensable as the energy and transport system is so based around and locked-in into an incumbent technology. Overcoming this lock-in is crucial. The report makes three main proposals. First, the scope, geographical coverage and duration of carbon pricing should be extended. By setting a higher carbon price, incentives for developing and investing in new low-carbon technologies are created. Second, temporary consortia for new infrastructure to solve early-phase market failures could be put in place. This is discussed using the example of hydrogen vehicles. Lastly and importantly, an open and public transition model is needed so that second-best transport solutions do not get a head start that afterwardscannot be reversed. The technological, economic and political challenge ahead is vast. But choosing the right decarbonisaton strategy offers huge economic, environmental and societal benefits. We should not overlook this debate because of the euro crisis.

Assessing the impact of the EU ETS using firm level data

This paper investigates the impact of the European Union’s Emission Trading System (EU ETS) at a firm level. Using panel data on the emissions and performance of more than 2000 European firms from 2005 to 2008, we are able to analyse the effectiveness of the scheme. The results suggest that the shift from the first phase (2005-2007) to the second phase (2008-2012) had an impact on the emission reductions carried out by firms. The initial allocation also had a significant impact on emission reduction. This challenges the relevance for the ETS of Coase’s theorem (Coase, 1969), according to which the initial allocation of permits is irrelevant for the post-trading allocation of marketable pollution permits. Finally, we found that the EU ETS had a modest impact on the participating companies’ performance. We conclude that a full auctioning system could help to reduce emissions but could also have a negative impact on the profits of participating companies