Reproducibility package for How Effective Are Emission Trading Systems In Reducing Emissions? Empirical Evidence From EU, New Zealand And Republic Of Korea
Overview
Emission trading schemes (ETS) are among the primary pricing instruments to reduce greenhouse gas emissions (GHGs). Currently, more than 35 ETS are in operation around the world at multi-national, national and sub-national levels. How effective these systems are in reducing emissions is a key empirical question. This study examines the effectiveness of three large-scale ETS implemented by the European Union (EU-ETS), New Zealand (NZ-ETS), and Republic of Korea (SK-ETS) in reducing CO2 emissions employing a generalized synthetic control method on data for the 2005-2020 period. The findings show that the EU-ETS led to a cumulative reduction of 21.3% in electricity-sector CO₂ emissions and 15.6% in total CO₂ emissions during the 2005–2020 period, relative to a no-ETS scenario. In New Zealand, ETS had no statistically significant effect on total national CO2 emissions—largely because nearly half of New Zealand’s emissions come from agriculture, a sector not covered by the NZ-ETS. The effectiveness of the SK‑ETS varied substantially across phases. While it did not initially halt the rise in emissions, it became a progressively strong driver of decarbonization over time.
Reproducibility Package
| Repository name | URI |
|---|---|
| Reproducible Research Repository (World Bank) | https://reproducibility.worldbank.org |
Reproducibility
Paper exhibits were reproduced on a computer with the following specifications:
• OS: Windows 11 Enterprise
• Processor: Intel(R) Xeon(R) Gold 6226R CPU @ 2.90GHz (2.90 GHz) (2 processors)
• Memory available: 16 GB
Runtime: 1 hour
To reproduce the findings in this paper, a replicator must:
- Secure Access to Data: Access the datasets not included in the package. See the Datasets section for more details.
- Run the Package:
- Update the working directory in line 11 of the do-file
master, and run it.
- Update the working directory in line 11 of the do-file
Since all the original data cannot be redistributed, the package includes the outputs produced by the authors, which can be used to review the results presented in the paper.
Data
Some data is limited-access and has not been included in the reproducibility package. For more details, please refer to the README file.
Description
| Author | Affiliation | |
|---|---|---|
| Govinda Timilsina | World Bank | gtimilsina@worldbank.org |
| Ze Song | Independent Researcher | zesong219@gmail.com |
| Gal Hochman | University of Illinois, Urbana-Champaign | gh141@illinois.edu |
2026-04-22
Scope and coverage
| Location | Code |
|---|---|
| World | WLD |
Disclaimer
The materials in the reproducibility packages are distributed as they were prepared by the staff of the International Bank for Reconstruction and Development/The World Bank. The findings, interpretations, and conclusions expressed in this event do not necessarily reflect the views of the World Bank, the Executive Directors of the World Bank, or the governments they represent. The World Bank does not guarantee the accuracy of the materials included in the reproducibility package.
Access and rights
| Name | URI |
|---|---|
| Modified BSD3 | https://opensource.org/license/bsd-3-clause/ |
Contacts
| Name | Affiliation | |
|---|---|---|
| Govinda Timilsina | World Bank | gtimilsina@worldbank.org |
| Reproducibility WBG | World Bank | reproducibility@worldbank.org |
Information on metadata
| Name | Abbreviation | Affiliation | Role |
|---|---|---|---|
| Reproducibility WBG | DECDI | World Bank - Development Impact Department | Verification and preparation of metadata |
2026-04-22
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