Artigo Revisado por pares

The EU ETS and corporate environmental abatement

2016; Taylor & Francis; Volume: 24; Issue: 5 Linguagem: Inglês

10.1080/13504851.2016.1189504

ISSN

1466-4291

Autores

Roel Brouwers, Frederiek Schoubben, Cynthia Van Hulle,

Tópico(s)

Corporate Social Responsibility Reporting

Resumo

This article studies the relationship between firm-level emissions-to-cap ratio (ETC) and environmental abatement, by using a unique and extensive data set of 10 762 installations covered by the European Union Emission Trading Scheme (EU ETS) matched to 5931 firms. We find that a shortage of emissions allowances is related to more abatement in later years while a surplus of emissions allowances results in worse subsequent environmental performance. This finding underscores the importance of reducing the global amount of allowances in the ETS system. Our results also suggest that stakeholder pressure and the creation of transparency concerning corporate environmental performance are likely to support the effectiveness of the system.

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