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Efficiency, productivity and environmental policy: A case study of power generation in the EU
Umeå University, Faculty of Social Sciences, Center for Environmental and Resource Economics (CERE). Umeå University, Faculty of Social Sciences, Umeå School of Business and Economics (USBE).
University of Birmingham, Department of Economics.
2012 (English)In: Energy Economics, ISSN 0140-9883, E-ISSN 1873-6181, Vol. 34, no 5, 1557-1568 p.Article in journal (Refereed) Published
Abstract [en]

This study uses the EU public power generating sector as a case study to investigate the environmental efficiency and productivity enhancing performance of the European Union's CO2 Emissions Trading Scheme (EU ETS) in its first phase. Using Data Envelopment Analysis methods, we measure the environmental efficiency and the productivity growth registered in public power generation across the EU over the 1996–2007 period. In the second stage of our analysis we attempt to explain changes in productivity and efficiency over time using econometric techniques. Our analysis suggests two conclusions: carbon pricing led to an increase in environmental efficiency and to a shift outwards of the technological frontier; and, the overly generous allocation of emission permits had a negative impact on both measures. These results are shown to be robust to changes in controls and specifications.

Place, publisher, year, edition, pages
Elsevier, 2012. Vol. 34, no 5, 1557-1568 p.
Keyword [en]
Emissions trading, EU ETS, Environmental efficiency, Productivity growth, Data envelopment analysis
National Category
Economics
Identifiers
URN: urn:nbn:se:umu:diva-57803DOI: 10.1016/j.eneco.2011.11.017OAI: oai:DiVA.org:umu-57803DiVA: diva2:544863
Available from: 2012-08-16 Created: 2012-08-16 Last updated: 2017-12-07Bibliographically approved

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CiteExportLink to record
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  • Other style
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  • de-DE
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  • en-US
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  • nn-NB
  • sv-SE
  • Other locale
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  • asciidoc
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