The Impact of the EU Emissions Trading System on CO2 Intensity in Electricity Generation

by Anna Widerberg and Markus Wråke

- Prior to the launch of the EU Emissions Trading System (EU ETS) in 2005, the electricity sector was widely proclaimed to have more low-cost emission abatement opportunities than other sectors. If this were true, effects of the EU ETS on carbon dioxide (CO2) emissions would likely be visible in the electricity sector. Our results do not indicate any link between the price of EUA and the CO2 emissions of Swedish electricity production.

Widerberg, A. and M. Wråke (2009). "The Impact of the EU Emissions Trading System on CO2 Intensity in Electricity Generation." Göteborgs Universitet School of Business, Economics and Law, Working Papers in Economics No 361, June 2009.