The joint impact of the European Union emissions trading system on carbon emissions and economic performance

This paper investigates the impact of European Union Emissions Trading System (EU ETS) on carbon emissions and economic performance based a matching methodology exploiting installation-level inclusion criteria combined with difference-in-differences. Installation-level data from national Polluting Registries in France, Netherlands, Norway United Kingdom point to reduction order ?10% between 2005 2012, line existing micro macro evidence. Meanwhile, firm-level 31 ETS-regulated countries shows that EU ETS had no significant profits employment, led an increase regulated firms' revenues fixed assets. We explore various explanations for these findings.