Firm Competitiveness and the European Union Emissions Trading Scheme

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...

Full description

Bibliographic Details
Main Authors:	Chan, Hei Sing, Li, Shanjun, Zhang, Fan
Format:	Journal Article
Language:	en_US
Published:	Elsevier 2013
Subjects:	cap and trade EU emissions trading scheme firm competitiveness
Online Access:	http://hdl.handle.net/10986/16209

id	okr-10986-16209
recordtype	oai_dc
spelling	okr-10986-162092021-04-23T14:03:28Z Firm Competitiveness and the European Union Emissions Trading Scheme Chan, Hei Sing Li, Shanjun Zhang, Fan cap and trade EU emissions trading scheme firm competitiveness 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. 2013-11-04T16:20:38Z 2013-11-04T16:20:38Z 2013-09-12 Journal Article Energy Policy 0301-4215 http://hdl.handle.net/10986/16209 en_US CC BY-NC-ND 3.0 IGO http://creativecommons.org/licenses/by-nc-nd/3.0/igo/ World Bank Elsevier Publications & Research :: Journal Article Publications & Research European Union
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	en_US
topic	cap and trade EU emissions trading scheme firm competitiveness
spellingShingle	cap and trade EU emissions trading scheme firm competitiveness Chan, Hei Sing Li, Shanjun Zhang, Fan Firm Competitiveness and the European Union Emissions Trading Scheme
geographic_facet	European Union
description	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.
format	Journal Article
author	Chan, Hei Sing Li, Shanjun Zhang, Fan
author_facet	Chan, Hei Sing Li, Shanjun Zhang, Fan
author_sort	Chan, Hei Sing
title	Firm Competitiveness and the European Union Emissions Trading Scheme
title_short	Firm Competitiveness and the European Union Emissions Trading Scheme
title_full	Firm Competitiveness and the European Union Emissions Trading Scheme
title_fullStr	Firm Competitiveness and the European Union Emissions Trading Scheme
title_full_unstemmed	Firm Competitiveness and the European Union Emissions Trading Scheme
title_sort	firm competitiveness and the european union emissions trading scheme
publisher	Elsevier
publishDate	2013
url	http://hdl.handle.net/10986/16209
_version_	1764432510813470720

Firm Competitiveness and the European Union Emissions Trading Scheme

Similar Items