The researchers found that manufacturing firms who were regulated through the ETS have remained financially healthy and competitive and that a reduction in these firms' emissions had no negative effect on their profitability. The study found that because of the policy, French manufacturers cut emissions by 43 million tonnes between 2005 and 2012.
Under the cap of the ETS, companies can receive or buy emission allowances which they can trade with one another. This creates a market for emissions where companies that can reduce emissions more cheaply can sell excess allowances to those facing higher abatement costs.
#carbon-emissions #eu-emissions-trading-system #manufacturing-firms #market-regulation #environmental-impact
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