Publications

Carbon pricing with regressive co-benefits: evidence from British Columbia’s carbon tax

Working paper by Lorenzo Sileci on 6 Dec 2023

The carbon tax introduced in British Columbia, Canada in 2018 is found to have had positive impacts on air quality. However the health co-benefits have been greatest in less polluted, less densely-populated and better-off neighbourhoods – highlighting that a carbon tax can exacerbate existing variations in pollution and health, where poorer areas are worse affected.

Policing carbon markets

Working paper by Raphael Calel, Antoine Dechezleprêtre, Frank Venmans on 13 Sep 2023

This working paper aims to shed light on the practical issues involved in policing carbon markets, such as new regulators with narrow authority and lack of legal precedent.

Estimating the effects of regulation when treated and control firms compete: a new method with application to the EU ETS

Working paper by Geoffrey Barrows, Raphael Calel, Martin Jégard, Hélène Ollivier on 18 May 2023

This paper presents a new method for estimating the effects of regulations when treated and control firms compete on the output market.

The voluntary carbon market and sustainable development

Policy publication by Rob Macquarie on 20 Mar 2023

This policy brief explores how the voluntary carbon market has the potential to pave the way to a net zero and sustainable economy and help close finance gaps in sectors that are critical to the transition.

Carbon default swap – disentangling the exposure to carbon risk through CDS

Working paper by Alexander Blasberg, Rüdiger Kiesel, Luca Taschini on 27 Jan 2023

In this paper the authors use Credit Default Swap (CDS) spreads to construct a forward-looking, market-implied carbon risk factor and study how, where and when carbon risk affects firms’ creditworthiness by examining whether firms’ exposure to carbon risk is reflected in the market prices of their CDS contracts.

Avoiding leakage from nature-based offsets by design

Working paper by Ben Filewod, Geoff McCarney on 12 Jan 2023

To help nature-based offsets reach their potential for climate change mitigation, this working paper proposes an alternative approach to managing the issue of market leakage.

Submission to the UK Government Review of Net Zero call for evidence

Policy publication by Esin Serin, Anna Valero, Brendan Curran, Adithya Subramoni on 9 Nov 2022

Response to the call for evidence made as part of the Independent Review of Net Zero commissioned by the UK’s Secretary of State for Business, Energy and Industrial Strategy.

Submission to the UK ETS Authority consultation, ‘Developing the UK Emissions Trading Scheme (UK ETS)’

Policy publication by Misato Sato, Luca Taschini, Josh Burke on 6 Sep 2022

This submission to the UK ETS Authority consultation on ‘Developing the UK Emissions Trading Scheme (ETS)’ provides evidence on implementing a net zero consistent ETS cap, Free Allocation policy, the expansion of the UK ETS to additional sectors, and incorporating greenhouse gas removal into the scheme.

Allocation, allocation, allocation! The political economy of the development of the European Union Emissions Trading System

Research article by Misato Sato, Raphael Calel on 1 Aug 2022

This paper analyses the evolution of the EU ETS from a political economy perspective, emphasizing the interaction of economic principles and political interests at pivotal moments, and showing how each compromise changed the scope for future design choices.

Searching for carbon leaks in multinational companies

Research article by Antoine Dechezleprêtre, Caterina Gennaioli, Ralf Martin, Mirabelle Muûls, Thomas Stoerk on 1 Feb 2022

This paper examines whether the European Union Emissions Trading System (EU ETS) has led companies to shift the location of production, thereby creating carbon leakage.