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Impact of the European Union Emissions Trading System (EU’s ETS) on competitiveness and exchanges

Imperial College London - LONDON - 2015

Some think such systems offer an incentive for companies to innovate and improve their environmental performance, and thus laying the foundations for a comparative advantage to emerge in the future. Others fear such systems force additional operating costs on companies, therefore weakening their performance on global markets. Up to now, our research team has been analyzing the impact of the EU’s Emissions Trading System (ETS) on employment, productivity and GHG emissions. This new project will enable us to compare the exporting performance of companies participating in the EU’s ETS to the exporting performance of companies who are not participating. Furthermore, has the EU’s ETS forced some companies to import more products from outside the EU, in particular energy intensive products ?