Nature: the root of all capital?
Natural capital is relevant to all of us, not just those who are environmentally conscious. An unbalanced focus on financial or economic capital has led countries and companies to focus on policies that deliver short-term financial or economic gains, but at the expense of a longer-term loss in terms… Read More
The GHG Protocol: measuring firms’ carbon footprints
Like a growing number of businesses, Oxera has made an explicit commitment to reducing our carbon emissions and becoming a net zero organisation. As part of this, we have estimated our annual carbon emissions using the most widely used method: the GHG Protocol. Carbon reporting is still in its… Read More
Stepping on the gas: European emergency measures to deal with high energy prices
High gas and electricity prices across Europe have raised urgent concerns and started a debate about possible ways to mitigate the impacts on consumers. Countries have adopted a variety of national measures, which can be broadly classified under four categories: retail market interventions, wholesale market interventions, security of supply… Read More
Will the end of a golden age for UK transport infrastructure be a catalyst for a green era?
Arguably, the UK has gone through a golden age of transport infrastructure planning and delivery in recent years. Since the turn of the millennium, transport capital budgets have grown and grown, with the £96bn integrated rail plan for upgrades in the Midlands and the North, £27.4bn announced for the second… Read More
Fit for 55? The impact of the EU’s climate package on the aviation industry
What will be the impact of the EU’s Fit for 55 package on European aviation? The policies are likely to affect passenger demand, fares and emissions, but a number of questions remain over potential distortions and how the policies can help to achieve ambitious net zero targets. Oxera was… Read More
Ticking the boxes on a green self-assessment, and the risk of greenwashing
In EU competition law, the key criteria for green self-assessments for companies are ‘fair share’ and ‘indispensability’. But how can we assess these from an economics perspective? And how can we distinguish legitimate sustainability agreements from greenwashing? We consider how the European Commission deals with consumer benefits in its… Read More
Grounded? The environmental implications of modal shift from air to rail
With growing pressure on economies to decarbonise in line with the 2015 Paris Agreement, transport—and particularly air transport—has come under increased scrutiny. Moving passengers from air to rail has been proposed as one way to decarbonise the sector. To this end, the EU and national governments have invested in high-speed rail lines and discussed restrictions on short-haul flights. But does rail always trump air from an environmental perspective? Read More
Bidding for a more sustainable future: carbon trading in the EU
In the context of a rapid increase in global energy and carbon prices since September 2021, questions have emerged around the functioning of the EU carbon market and the role of carbon prices in public policy. How can we assess whether the carbon market is functioning well? What does the evidence tell us, and is there a need for further policy intervention? Read More
Creating a market for negative emissions
As the curtain dropped on last year’s COP26 summit, many were heartened by the agreements made. Yet more needs to be done to fast-track the roll-out of negative emissions technologies that will be vital in addressing irreversible global damage from carbon emissions. Oxera research for Drax found a range of market design mechanisms through which these technologies could figure in the UK’s Emissions Trading Scheme. Angela Hepworth, Innovation Commercial Director at Drax Group, looks at the role of negative emissions technologies in reaching net zero targets. Read More
Anticipating future public policy changes in environmental cost–benefit analysis
In pursuit of net zero targets, public entities worldwide are increasingly employing environmental cost–benefit analysis (CBA). The outcome of such an analysis depends on the public environmental policy standards applicable at that time. But what if these standards change? Ilaria Noviello, Oxera Analyst, and Shaun Tey, Economist at Ofcom, draw on a case study involving the Netherlands Authority for Consumers and Markets (ACM) to explore how policymakers can account for potential changes to public policy when conducting environmental CBA. Read More