Studies of the EU Emissions Trading System (ETS) abound. Much is known about the economic incentives they contain to promote abatement and innovation, and studies are focusing on the short-term aggregate effects at sector and system levels. Less, however, is known about how the EU ETS affects...

This article examines to what extent and how the EU ETS has influenced the climate strategies of two Nordic pulp and paper companies: Swedish SCA and Norwegian Norske Skog. Rising electricity prices are perceived to be the greatest effect of the scheme. The EU ETS has served to reinforce...