Calculation of the Macroeconomic Carbon Rebound Effect of the European Union Emission Trading System

Bolat, Cankut Kaan
Emission trading systems are currently the most popular market–based instruments in the combat against climate change. The European Union Emission Trading System is the world's oldest and most mature ETS application. Having announced its net zero targets in February 2022, it is on Türkiye’s agenda to implement an ETS application to meet the country’s net zero targets. While there is rich literature showing the benefits of ETS applications from different perspectives, very few studies question their efficiencies, and no empirical study has tried to measure the macroeconomic rebound effect of an ETS application. Recent econometric methods and novel estimators are used in this study to calculate a possible macroeconomic carbon rebound effect that may exist due to the applications of EU – ETS, a causality analysis is employed and policy suggestions are made at the end of the study.


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Citation Formats
C. K. Bolat, “Calculation of the Macroeconomic Carbon Rebound Effect of the European Union Emission Trading System,” Ph.D. - Doctoral Program, Middle East Technical University, 2022.