Abstract: The two key questions addressed in this policy brief are if the EU emissions trading system ETS has an effect on energy savings in ETS industry and what can be done to increase the effect of the ETS on energy efficiency in industry. Data from the Odyssee database do not show clear effects of the EU ETS on energy efficiency in industry. It is explained why this is the case and what can be done to improve the effect of the ETS on industrial efficiency.
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