The Impact of The Carbon Emissions Trading System on The European Union Decoupling Index

Zeyu Zhang

doi:10.54097/vm2pex57

Authors

Zeyu Zhang School of Business, Macau University of Science and Technology, Macau, China

DOI:

https://doi.org/10.54097/vm2pex57

Keywords:

ETS, decoupling, economic growth.

Abstract

This article elaborates on the impact of the Emissions Trading System (ETS) on decoupling, and current scholars mainly focus on the Environmental Impact Population Affluence Technology (IPAT) model, Kaya identity, and Logarithmic Mean Divisia Index Method (LMDI) decomposition method for the mechanism of impact. Environmental Impact, Population, Affluence, and Technology (ETS) has had a profound impact on the European Union (EU) decoupling index. The EU ETS establishes a policy coordination framework and provides a data foundation, which is the key and institutional guarantee for the EU to achieve decoupling between economic growth and carbon emissions. It has established a cross-member-state policy coordination framework, unified carbon emission accounting standards and trading rules, and provided a continuous and accurate emission data foundation for the calculation of decoupling indices. Consequently, it has become a key institutional pillar for the EU to achieve the decoupling goal of "economic growth alongside a decline in total carbon emissions". The coordinated development of ETS and other policies has promoted environmental effectiveness, social equity, economic efficiency, and political feasibility. Taking LMDI as an example, mechanism analysis was conducted to calculate the contribution values of different factors to the decoupling index in different periods, to understand the driving mechanism of carbon emission changes.

Downloads

Download data is not yet available.

References

[1] European Commission. Delivering the European Green Deal. 2021.

[2] Chimeddorj N, Abada O. Empirical analysis of Mongolia's carbon emission factors based on Kaya identity. European Journal of Business and Management, 2015.

[3] Zhou Y, Zhao L. Impact analysis of the implementation of cleaner production for achieving the low-carbon transition for SMEs in the Inner Mongolian coal industry. Journal of Cleaner Production, 2016.

[4] Al-mulali U. Factors affecting CO2 emission in the Middle East: a panel data analysis. Energy, 2012.

[5] Inhwan K, Taedong L. Carbon pricing and decoupling between greenhouse gas emissions and economic growth: a panel study of 29 European countries, 1996-2014. Review of Policy Research, 2021.

[6] Li Z H, Feng X G, Wang Y L. Measurement of the decoupling effect of carbon emissions in China's tourism industry and the evolution of spatial and temporal patterns. Statistics and Decision Making, 2021, 37(22): 46-51.

[7] Zhao X. Research on the decoupling relationship and influencing factors between air pollution and economic growth. Journal of Taiyuan University of Technology, 2019, 37(2): 49-55.

[8] Patle M, Shastri K. Reclaiming the Narrative Employing Cultural Relativism and Re-evaluating the Ethics and Conflicts in Uttarkaanda. Journal of Dharma Studies, 2025, 9(16): 1-14.

[9] Shmeleva V E, Basyreva Y L, Vakhrusheva V T, et al. Constructing of Synthetic DNA-Histone Networks as Extracellular Trap Model for Biomedical Research. Bulletin of Experimental Biology and Medicine, 2025, 12(6): 1-5.

[10] Yoğun Y, Bezirgan U, Ertan B M, et al. Effect of end-to-side anterior interosseous nerve transfer in proximal ulnar nerve injuries: A comparative study. Journal of Hand and Microsurgery, 2025, 17(6): 100-103.