Has the EU ETS induced low-carbon innovation?|
21 February: Antoine Dechezleprêtre and Raphael Calel
The EU ETS is the main instrument of European climate policy, seen as a driving force of the EU’s transition to a low-carbon economy. Compelling evidence is found that the EU ETS has indeed encouraged regulated companies to develop new low-carbon technologies, but this effect is concentrated among too few companies to account for the surge in low-carbon patenting.