Publications
53 results found
Martin R, Muûls M, de Preux LB, et al., 2014, On the empirical content of carbon leakage criteria in the EU Emissions Trading Scheme, Ecological Economics, Vol: 105, Pages: 78-88, ISSN: 0921-8009
The EU Emissions Trading Scheme continues to exempt industries deemed at risk of carbon leakage from permit auctions. Carbon leakage risk is established based on the carbon intensity and trade exposure of each 4-digit industry. Using a novel measure of carbon leakage risk obtained in interviews with almost 400 managers at regulated firms in six countries, we show that carbon intensity is strongly correlated with leakage risk whereas overall trade exposure is not. In spite of this, most exemptions from auctioning are granted to industries with high trade exposure to developed and less developed countries. Our analysis suggests two ways of tightening the exemption criteria without increasing relocation risk among non-exempt industries. The first one is to exempt trade exposed industries only if they are also carbon intensive. The second one is to consider exposure to trade only with less developed countries. By modifying the carbon leakage criteria along these lines, European governments could raise additional revenue from permit auctions of up to €3 billion per year, based on a permit price of €30.
Martin R, Muûls M, de Preux LB, et al., 2014, Industry compensation under relocation risk: a firm-level analysis of the EU Emissions Trading Scheme, The American Economic Review, Vol: 104, Pages: 2482-2508, ISSN: 0002-8282
When regulated firms are offered compensation to prevent them from relocating, efficiency requires that payments be distributed across firms so as to equalize marginal relocation probabilities, weighted by the damage caused by relocation. We formalize this fundamental economic logic and apply it to analyzing compensation rules proposed under the EU Emissions Trading Scheme, where emission permits are allocated free of charge to carbon intensive and trade exposed industries. We show that this practice results in substantial overcompensation for given carbon leakage risk. Efficient permit allocation reduces the aggregate risk of job loss by more than half without increasing aggregate compensation.
Martin R, Muûls M, Wagner UJ, 2014, Trading Behavior in the EU Emissions Trading Scheme
Martin R, Muûls M, Wagner UJ, 2013, The Impact of the EU ETS on Regulated Firms: What is the Evidence After Eight Years?
Muûls M, Petropoulou D, 2013, A swing state theory of trade protection in the Electoral College, Canadian Journal of Economics, Vol: 46, Pages: 705-724
This paper analyzes trade policy determination in the Electoral College in the presence of swing voters. It determines the circumstances under which incumbent politicians have an incentive to build a reputation for protectionism, thus swaying voting decisions and improving their reelection probability. Strategic trade protection is shown to be more likely when protectionist swing voters have a lead over free trade supporters in states with relatively strong electoral competition and in states representing a larger proportion of Electoral College votes. An empirical test using a measure of industrial concentration in swing and decisive U.S. states lends support to the theoretical findings.
Gennaioli C, Martin R, Muuls M, 2013, Using micro data to examine causal effects of climate policy, Handbook on Energy and Climate Change
Martin R, Muuls M, de Preux L, et al., 2012, Industry Compensation Under Relocation Risk: A Firm-Level Analysis of the EU Emissions Trading Scheme, Publisher: CEP, DP 1150
Martin M, Muuls M, 2011, The sensitivity of UK manufacturing firms to extreme weather events
Anderson B, Leib J, Martin R, et al., 2011, Climate change policy and business in Europe: evidence from interviewing managers
Muuls M, Wagner U, Martin M, 2011, Carbon markets, carbon prices and innovation: Evidence from Interviews with Managers, EAERE (European Association of Environmental and Resource Economists) Conference
Martin R, Muûls M, Preux LBD, et al., 2011, Anatomy of a paradox: Management practices, organizational structure and energy efficiency, Journal of Environmental Economics and Management, Pages: ---, ISSN: 0095-0696
Martin R, Muûls M, Wagner UJ, 2010, Europe's emissions trading scheme: taxpayers versus sthe industry lobby
The European Commission plans to tighten the greenhouse gas emissions targets in the Emissions Trading System. Ralf Martin and colleagues examine the likely impact on affected businesses, and conclude that industry is exploiting concerns about competitiveness to obtain free emission permits according to criteria that are too lax.
Martin R, Muûls M, De Preux LB, et al., 2010, Anatomy of a Paradox: Management Practices, Organizational Structure and Energy Efficiency, Social Science Research Network Working Paper Series
This paper provides new evidence on the relationship between management practices and firm performance. We interviewed managers of 190 randomly selected manufacturing plants in the UK and matched their responses with official business microdata. We find that climate friendly management practices are associated with lower energy intensity and higher productivity. Firms that adopt more such practices also conduct more climate friendly R&D which will sustain future growth in energy efficiency. Our findings are akin to the "energy efficiency paradox" and highlight the linkages between particular management practices and firm-level energy efficiency. We also find a strong empirical link between climate friendly management practices and organizational structure. Firms are more likely to adopt such practices if climate change issues are managed by the environmental or energy manager, and if this manager is close to the CEO. Adoption is less likely when the CEO is in charge of climate change issues.
Martin R, Muûls M, Wagner UJ, 2010, Still time to Reclaim The European Union Emissions Trading System for the European Tax Payer
The criteria proposed by the EU Commission to identify industries that will receive free emission permits in the third phase of the European Union Emissions Trading System (EU ETS) are not restrictive enough. Evidence from interviews with almost 800 managers in Europe shows that most of the sectors entitled to free emission permits are not facing an increased risk of closure or relocation outside of the EU as a consequence of permit auctioning. Free permit allocation is therefore just a transfer of tax payers' money to industry without any additional social benefit. We propose a simple modification of the Commission's criteria for free permit allocation which could save European tax payers at least €7 billion annually.
Anderson B, Leib J, Martin R, et al., 2010, "Climate Change Policy and Business in Europe. Evidence from Interviewing Managers"
Muuls M, Martin R, de Preux L, et al., 2010, Climate Change Policy and Business in Europe: Evidence from interviewing managers, Comparative Analysis of Enterprise (micro) Data (CAED) Conference
Nicholson E, Mace GM, Armsworth PR, et al., 2009, Priority research areas for ecosystem services in a changing world, JOURNAL OF APPLIED ECOLOGY, Vol: 46, Pages: 1139-1144, ISSN: 0021-8901
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Muuls M, Pisu M, 2009, Imports and Exports at the Level of the Firm: Evidence from Belgium, World Economy, Vol: 32, Pages: 692-734
Muuls M, 2009, The effect of investment on bargaining positions. Over-investment in the case of international agreements on climate change, NCCCR Conference on the International Dimensions of Climate Policies
Muuls M, The International Study Group on Exports and Productivity, 2008, Understanding Cross-Country Differences in Exporter Premia: Comparable Evidence for 14 Countries, Review of World Economics, Vol: 144, Pages: 596-635
Muûls M, 2008, Exporters and credit constraints. A firm-level approach
By building a theoretical model and taking it to the data with two novel datasets, this paper analyses the interaction between credit constraints and exporting behaviour. Building a heterogeneous firms model of international trade with liquidity-constrained firms yields several predictions on the equilibrium relationships between productivity, credit constraints and exports that are then verified in the data. The main findings of the paper are that firms are more likely to be exporting if they enjoy higher productivity levels and lower credit constraints. Also, credit constraints are important in determining the extensive but not the intensive margin of trade in terms of destinations. This introduces a pecking order of trade. Finally, an exchange rate appreciation will cause existing exporters to reduce their exports, entry of credit-constrained potential exporters and exit of the least productive exporters
Mayer T, Ottaviano G, 2007, The happy few: the internationalisation of European firms. New facts based on firm-level evidence, Publisher: Bruegel - CEPR
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