I was awarded funding under the British Academy/ Leverhulme Small Grant scheme in the amount of £7,813 for my project on “The Effectiveness of Carbon Markets in Europe, 2005-2012.” Here is the project’s executive summary:
Climate change is one of the biggest challenges we currently face. While we have seen some progress internationally, fighting climate change requires effective, domestic policies. Carbon markets, an often used policy to curb CO2 emissions,charge polluters a price as they emit carbon into the atmosphere. Promising in theory, there is a dearth of policy evaluations showing that carbon markets do indeed reduce CO2 emissions. This project provides the first empirically rigorous assessment of European carbon markets, 2005-2012—one of the most ambitious climate policies to date. For this, I compile an original EU-wide emissions dataset at the sector level and introduce a statistical method that helps distinguish between emission reductions due to the policy itself and other trends in the data, e.g. lower economic activity. Given the worldwide growth of carbon markets as the primary policy to fight climate change, including the planned nationwide rollout in China, project results will be of great interest to academics, policymakers, and other stakeholders in the UK, Europe, and beyond.