Evaluating ETS Implementation to Mitigate CO₂ Emission

Salsabillah, Nurma Erita (2025) Evaluating ETS Implementation to Mitigate CO₂ Emission. S1 thesis, Universitas Andalas.

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Abstract

ABSTRACT This study examines the effectiveness of the Emission Trading System (ETS) in reducing CO₂ emissions and its impact on economic growth using the Difference-in-Differences (DiD) method with staggered treatment adoption as developed by Callaway & Sant’Anna (2020). By analyzing panel data from 13 countries between 2000 and 2023, this study compares the effects of ETS implementation on carbon emissions and economic growth. The results show that ETS significantly reduces carbon emissions, with the impact becoming more pronounced over time, particularly after the third year of implementation. Additionally, the study finds that the ETS promotes long-term economic growth in the industrial sector, with positive effects observed in the years following policy adoption. These findings support the view that ETS can drive both environmental and economic benefits, with the effects becoming more significant as firms adjust to the policy over time. Keywords: Emission Trading System, Carbon Emission, Economic Growth

Item Type: Thesis (S1)
Supervisors: Dr. betty uspri, S.E., M.Si
Uncontrolled Keywords: Emission Trading System, Carbon emission, Economic
Subjects: H Social Sciences > H Social Sciences (General)
Divisions: Fakultas Ekonomi dan Bisnis
Depositing User: S1 Ekonomi Internasional
Date Deposited: 27 Aug 2025 07:36
Last Modified: 27 Aug 2025 07:36
URI: http://scholar.unand.ac.id/id/eprint/506075

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