  The results based on the nonparametric nearest neighbor matching suggest a
statistically significant positive effect of the EU ETS on the economic
performance of the regulated firms during Phase I of the EU ETS. A year-by-year
analysis shows that the effect was only significant during the first year of
Phase I. The EU ETS, therefore, had a particularly strong effect when it was
introduced. It is important to note that the EU ETS does not homogeneously
affect firms in the manufacturing sector. We found a significant positive
impact of EU ETS on the economic performance of regulated firms in the paper
industry.
