Firm Competitiveness and the European Union Emissions Trading Scheme

Publication:
Firm Competitiveness and the European Union Emissions Trading Scheme

dc.contributor.author	Chan, Hei Sing
dc.contributor.author	Li, Shanjun
dc.contributor.author	Zhang, Fan
dc.date.accessioned	2013-11-04T16:20:38Z
dc.date.available	2013-11-04T16:20:38Z
dc.date.issued	2013-09-12
dc.description.abstract	The European Union Emissions Trading Scheme is the first international cap-and-trade program for CO2 and the largest carbon pricing regime in the world. A principle concern over the Emissions Trading Scheme is the potential impact on the competitiveness of industry. Using a panel of 5873 firms in 10 European countries during 2001–2009, this paper seeks to assess the impact of the carbon regulation on three variables through which the effects on firm competitiveness may manifest—unit material costs, employment and revenue. Our analysis focuses on three most polluting industries covered under the program-power, cement, and iron and steel. Empirical results indicate that the emissions trading program had different impacts across these three sectors. While no impacts are found on any of the three variables in cement and iron and steel industries, our analysis suggests a positive effect on both material costs and revenue in the power sector: the effect on material costs likely reflects the costs to comply with emissions constraints or other parallel renewable incentive programs while that on revenue may partly due to cost pass-through to consumers in a market less exposed to competition outside EU. Overall our findings do not substantiate concerns over carbon leakage, job loss and industry competitiveness at least during the study period.	en
dc.identifier.citation	Energy Policy
dc.identifier.doi	10.1596/16209
dc.identifier.issn	0301-4215
dc.identifier.uri	https://hdl.handle.net/10986/16209
dc.language.iso	en_US
dc.publisher	Elsevier
dc.rights	CC BY-NC-ND 3.0 IGO
dc.rights.holder	World Bank
dc.rights.uri	http://creativecommons.org/licenses/by-nc-nd/3.0/igo/
dc.subject	cap and trade
dc.subject	EU emissions trading scheme
dc.subject	firm competitiveness
dc.title	Firm Competitiveness and the European Union Emissions Trading Scheme	en
dc.type	Journal Article	en
dc.type	Article de journal	fr
dc.type	Artículo de revista	es
dspace.entity.type	Publication
okr.crosscuttingsolutionarea	Jobs
okr.crosscuttingsolutionarea	Climate Change
okr.date.disclosure	2015-09-12
okr.date.doiregistration	2025-05-06T10:58:11.007925Z
okr.doctype	Publications & Research::Journal Article
okr.doctype	Publications & Research
okr.externalcontent	External Content
okr.globalpractice	Environment and Natural Resources
okr.globalpractice	Trade and Competitiveness
okr.journal.nbpages	1056-1064
okr.language.supported	en
okr.peerreview	Academic Peer Review
okr.region.geographical	European Union
okr.relation.associatedurl	http://www.sciencedirect.com/science/article/pii/S0301421513009567
okr.relation.associatedurl	https://openknowledge.worldbank.org/handle/10986/16847
okr.sector	Industry and trade :: General industry and trade sector
okr.theme	Environment and natural resources management :: Pollution management and environmental health
okr.topic	Environment::Climate Change Mitigation and Green House Gases
okr.topic	Environment::Pollution Management & Control
okr.topic	Industry::General Manufacturing
okr.topic	Industry::Industrial Economics
okr.volume	63(December 2013)