The impact of the EU ETS in the Czech Republic
|Author:||Mgr. Lenka Tomášková|
|Year:||2021 - summer|
|Leaders:|| Mgr. Milan Ščasný PhD.
|Work type:|| Finance, Financial Markets and Banking
|Awards and prizes:|
|Abstract:||This thesis examines the environmental effect of the European Union Emissions
Trading Scheme (EU ETS) in the Czech Republic. Specifically, the impact of
the EU ETS on CO2 emissions, carbon-fuel intensity and carbon intensity of
production (measured by revenues) is analysed on installation-level financial,
environmental and energy data throughout all three phases of the EU ETS
over 2005 - 2019. The difference-in-differences approach with propensity score
matching is used to infer the causal effect of the regulation. We find no effect of
the EU ETS on carbon emissions and carbon intensities in the Czech Republic.
This finding holds for various model specifications and different approaches we
utilised. In the end, we discuss possible reasons why the EU ETS might not
lead to any significant effect in the Czech Republic.