Arbeitspapier

Carbon management: Evidence from case studies of German firms under the EU ETS

This paper examines the management practices of German firms with obligations under the EU Emissions Trading Scheme (EU ETS) based on six structured in-depth interviews with managers of firms from different industries and based on survey data. The paper sheds light on management and trading practices, abatement behaviour, and the impact of the EU ETS on long-term decisions, such as investment decisions or innovative capacity. The aim is to provide information on firm-internal management processes related to the EU ETS and to strengthen intuition for microeconomic consequences of greenhouse gas regulation in a cap-and-trade scheme. The analysis reveals that management practices in the EU ETS are mainly driven by emission levels, firm size, pre-existing management structures and production patterns. While larger emitters (about 100,000 tCO2 per year or larger) are perfectly capable to carry out all relevant tasks, smaller emitters behave more passively due to transaction costs and lower expected return of transactions. Our analysis suggests that institutional responds to regulation should be taken into account for the design of greenhouse gas regulation.

Language
Englisch

Bibliographic citation
Series: ZEW Discussion Papers ; No. 12-079

Classification
Wirtschaft
Industry Studies: Manufacturing: General
Environmental Economics: General
Production Management
Subject
Carbon Management
Emissions Trading
EU ETS
Luftverunreinigung
Kohlendioxid
Management
Unternehmenspolitik
Emissionshandel
EU-Europäisch
Deutschland
EU-Staaten

Event
Geistige Schöpfung
(who)
Heindl, Peter
Lutz, Benjamin
Event
Veröffentlichung
(who)
Zentrum für Europäische Wirtschaftsforschung (ZEW)
(where)
Mannheim
(when)
2012

Handle
URN
urn:nbn:de:bsz:180-madoc-327560
Last update
10.03.2025, 11:46 AM CET

Data provider

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Object type

  • Arbeitspapier

Associated

  • Heindl, Peter
  • Lutz, Benjamin
  • Zentrum für Europäische Wirtschaftsforschung (ZEW)

Time of origin

  • 2012

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