Firm Competitiveness and the European Union Emissions Trading Scheme Chan, Hei Sing Li, Shanjun Zhang, Fan 2013-11-04T16:20:38Z 2013-11-04T16:20:38Z 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.issn 0301-4215
dc.language.iso en_US
dc.publisher Elsevier
dc.rights CC BY-NC-ND 3.0 IGO
dc.rights.holder World Bank
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 2015-09-12
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.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)
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