Abstract
In this contribution we explain the mechanism of the EU Emissions Trading System (ETS) for greenhouse gases and explore into its likely sustainability impact on European industry. In doing so, we focus on energy-intensive industries like cement, steel and aluminium production as well as on the emerging hydrogen economy. Our hypothesis is that while the impact of the EU ETS on energyintensive industries is severe and likely to be negative, the impacts on the emerging hydrogen economy are almost negligible. If that proves to be correct, the ETS would have a bias towards cost-increases for industry without fully exploiting the potential to stimulate innovation. Our interest thus is an analysis of expected structural changes in the European economy as a whole, where industries are scrutinized to adapt to climate policy while keeping core competences of energy intensive production along value chains, and others are challenged to radically innovate and to invent a new energy carrier such as hydrogen within existing energy markets.
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Bleischwitz, R., Fuhrmann, K. (2007). The EU Emissions Trading System and Its Sustainability Impact on European Industry. In: Tilly, R., Welfens, P., Heise, M. (eds) 50 Years of EU Economic Dynamics. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-540-74055-1_21
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DOI: https://doi.org/10.1007/978-3-540-74055-1_21
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