Emitting half of the greenhouse gases in industrialised countries, the oil and gas sector plays a central role in global GHG emissions. Environmental regulations such as the EU ETS emerged to fight climate change by reducing GHG emissions. Although those regulations increasingly affect oil and gas companies, specific implications of the EU ETS on business strategies are widely unknown. Therefore, this dissertation explores strategic responses to the EU ETS and analyses the impact of the regulation on the oil and gas sector.
A strategic response framework, derived from the literature review, provides the basis for the analysis and is consequently adapted to the research findings. Empirical case studies of BP and Shell, combine secondary data and expert interviews to identify and further outline specific responses to the EU ETS.
The research findings indicate that the EU ETS significantly impacts business strategies of oil and gas firms. The resulting strategic responses are mainly influenced by regulatory pressure, economic factors and competitive implications. Responses in various corporate, managerial and operational areas could be identified. From a corporate perspective, oil and gas companies support the EU ETS, as a trading scheme for carbon is preferred to other options, such as carbon taxes. Managerial responses comprise the introduction of environmental risk management systems, incorporating a carbon price into investment decisions, and the establishment of carbon trading teams, mitigating the costs of the EU ETS. Operationally, oil and gas firms responded directly by engaging in carbon trading and investing in Carbon Capture and Storage technologies. While, process improvements and lower emission generating products such as natural gases and biofuels are responses triggered by the EU ETS, investments in renewables are not affected. Additional findings of the research are the high probability that carbon and investment leakage will take place as well as the significant impact, the EU ETS might has on M&A and outsourcing decisions, depending on the carbon price.
Inhaltsverzeichnis (Table of Contents)
- GENERAL INTRODUCTION
- PURPOSE OF THE RESEARCH
- RESEARCH INTEREST
- RESEARCH QUESTION
- RESEARCH OBJECTIVES
- DISSERTATION STRUCTURE
- BACKGROUND ON CLIMATE CHANGE REGULATIONS AND THE EU ETS
- WHY CLIMATE CHANGE IS ADDRESSED BY COMPANIES
- CLIMATE CHANGE REGULATIONS
- THE KYOTO PROTOCOL
- THE EUROPEAN EMISSION TRADING SCHEME
- CHAPTER CONCLUSION
- LITERATURE REVIEW
- CONCEPTUAL STUDIES
- DUNN (2000)
- HOFFMAN (2002)
- SCHALTEGGER, BURRIT AND PETERSEN (2003)
- BOIRAL (2006)
- EMPIRICAL STUDIES
- LEVY AND KOLK (2002)
- SKJAERSETH AND SKODVIN (2003)
- PACALA AND SOCOLOW (2004)
- PINSKE AND KOLK (2007)
- HOFFMANN (2007)
- JESWANI, Wehrmeyer and Mulugetta (2008)
- KIM (2008)
- LACOMBE (2008)
- PINSKE AND KOLK (2009)
- ROGGE, SCHNEIDER AND HOFFMANN (2010)
- CONCEPTUAL STUDIES
Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)
This dissertation aims to explore the strategic responses of oil and gas companies to the EU Emission Trading Scheme (EU ETS) and analyze the impact of this regulation on the industry. The research utilizes a framework derived from literature review to identify and analyze specific responses. The study focuses on the implications of the EU ETS on business strategies, encompassing regulatory pressure, economic factors, and competitive implications. Case studies of BP and Shell are conducted using secondary data and expert interviews to provide in-depth insights into the strategic responses.- Strategic responses of oil and gas companies to the EU ETS
- Impact of the EU ETS on business strategies
- Regulatory pressure, economic factors, and competitive implications of the EU ETS
- Case studies of BP and Shell
- Corporate, managerial, and operational responses to the EU ETS
Zusammenfassung der Kapitel (Chapter Summaries)
The first chapter provides an introduction to the research, outlining the purpose, research interest, question, objectives, and structure of the dissertation. It emphasizes the significance of the oil and gas industry in global greenhouse gas emissions and highlights the need to understand the implications of the EU ETS on business strategies.
Chapter two presents background information on climate change regulations and the EU ETS. It explores the reasons why companies address climate change and discusses key regulations such as the Kyoto Protocol and the EU ETS. The chapter outlines the key features of the EU ETS and its implications for the oil and gas sector.
The third chapter reviews relevant literature on the EU ETS, including both conceptual and empirical studies. It examines various frameworks and analyses concerning the impact of the EU ETS on different industries, providing a foundation for the research.
Schlüsselwörter (Keywords)
This dissertation focuses on the oil and gas industry's strategic responses to the EU Emission Trading Scheme (EU ETS), encompassing regulatory pressure, economic factors, and competitive implications. The research delves into the impact of the EU ETS on business strategies, exploring corporate, managerial, and operational responses. The dissertation utilizes case studies, secondary data, and expert interviews to provide insights into the complexities of carbon emission regulations and their implications for the oil and gas sector. Key terms include: EU ETS, carbon trading, emissions reduction, strategic responses, corporate strategy, environmental risk management, carbon price, investment decisions, carbon capture and storage, renewables, leakage, M&A decisions, and outsourcing.- Arbeit zitieren
- Simon Hecker (Autor:in), Marc Noy (Autor:in), 2011, Strategic Responses to the EU Emission Trading Scheme, München, GRIN Verlag, https://www.grin.com/document/180583
