Abstract
We explore the role of policy stringency, defined by the expected compliance gap --the difference between current and anticipated future allowances and projected emissions-- as a key institutional factor influencing emission reduction efforts across different sectors in the EU ETS. While firm-specific characteristics contribute to changes in carbon intensity, policy stringency emerges as the only consistently influential driver across all sectors. We also use policy stringency to assess the feasibility of achieving the EU Fit for 55 targets.
Original language | English |
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Publication status | Published - 1 Oct 2024 |