Monasterolo, I., Pacelli, A., Pagano, M. and Russo, C. (2025). "A European Climate Bond". Economic Policy. Link. Vox-EU column here
Ambec, S., Esposito, F. and Pacelli, A. (2024). "The Economics of Carbon Leakage Mitigation Policies". Journal of Environmental Economics and Management, Volume 125. Link Presented at FSR-EUI-IAERE School on Economics and Policy of Trade and Climate Change, 2023; IAERE 11th Annual Conference, 2023; EAERE winter School, 2023; invited speaker to the IAERE Tour 2022; EAERE Conference 2022.
Job Market Paper. Pacelli, A. "Being a New Entrant or an Incumbent Matters: Emission Abatement and EU ETS". (JMP) IAERE Young Environmental Economist Award, 2025. Presented at IAERE Conference, 2024, 2025; 18th Igier-CSEF symposium, 2024; 10th Atlantic Workshop 2024; 13th AERNA Conference; XXXVI SIEP, 2024.
This paper studies how changes in the allocation of free emission allowances affect firm entry and abatement behavior under the European Union Emissions Trading System (EU ETS). I exploit the 2013 reform, which redistributed free allowances across sectors, altering the value of the transfer each firm received without changing the marginal cost of emissions. Using administrative data on Italian industrial plants, I show that sectors receiving more generous allocations attracted relatively dirtier entrants, whereas sectors facing reductions in free allowances experience entry by cleaner producers. Incumbent plants display limited technological adjustment, indicating that the reform operated mainly through entry rather than through within-plant abatement. A simple model rationalizes these findings by showing that free allowances act as entry subsidies that distort the composition of producers. The results show that the distributional design of carbon trading systems can have effects on industry dynamics even in the absence of changes in regulatory stringency.
Nota, L.D., Pacelli, A. and Russo, C. "Trade Impacts of the EU ETS: Insights from Italian Firms". Draft available soon
Chiappori, P.A., Ciscato, E., Guerriero, C. and Pacelli A., "Sustainable Families". Draft available soon
De Santis, A., Guerriero, C. and Pacelli, A. "Carbon Markets and International Trade: a Gravity Model Application to the EU ETS". Draft available soon
Ambec, S., Esposito, F., and Pacelli, A. "Climate policy and trade". Draft available soon
Pacelli, A., Pagnozzi, M., Russo, C., and Sartori, E. "Environmental perception and policy desirability".
Pacelli, A., Vasca, M., "The Effect of Joining a Governing Coalition on Parliamentary Speeches and Votes".
[Summary] Pacelli (2025), "The Political Economy of Carbon Pricing - WCEREA webinar". Link
[Book Chapter] Montanaro, M. and Pacelli, A. (2024). "Policy evaluation: emission intensity indicators", chapter 3 of the book "Assessing the firm level impact of the Emission Trading System in Italy: effectiveness, performance and illegal behaviours". McGraw Hill. Link
[Note] "A propos de MACF - politiques climatiques, innovation et compétitivité internationale", (2023). Commission de l'économie du développement durable, Ministère de la transition écologique in France. Contributor of the note written by EAERE-WS participants.
[Book Chapter] Guerriero, C. and Pacelli, A. (2022). "Chapter 7: Discounting Benefits and Costs". Academic Press, 2022. Link