Firm Competitiveness and the European Union Emissions Trading Scheme
The European Union Emissions Trading Scheme is the first international cap-and-trade program for carbon dioxide and the largest carbon pricing regime in the world. A significant concern over the Emissions Trading Scheme has been the potential impac...
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| Format: | Policy Research Working Paper |
| Language: | English en_US |
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World Bank, Washington, DC
2014
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| Online Access: | http://documents.worldbank.org/curated/en/2013/10/18412453/firm-competitiveness-european-union-emissions-trading-scheme http://hdl.handle.net/10986/16847 |
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okr-10986-168472021-04-23T14:03:32Z Firm Competitiveness and the European Union Emissions Trading Scheme Chan, Hei Sing Li, Shanjun Zhang, Fan ABATEMENT ABATEMENT COSTS ABATEMENT OPTIONS ACID ACID RAIN ADVERSE IMPACT AGGREGATE LEVEL AIR POLLUTION ALLOCATION ALLOCATION OF ALLOWANCES ALLOCATION OF EMISSION ALLOWANCES ALLOCATION OF PERMITS ALLOWANCE ALLOWANCE ALLOCATION ALLOWANCE TRADING ANNUAL CAP APPROACH AUCTION BALANCE BANKING OF ALLOWANCES BUYER CARBON CARBON ALLOWANCES CARBON DIOXIDE CARBON DIOXIDE EMISSIONS CARBON EMISSIONS CARBON FUELS CARBON LEAKAGE CARBON MARKET CARBON PRICE CARBON REGULATION CARBON RESTRICTIONS CARBON TECHNOLOGIES CARBON TRADING CEMENT CEMENT INDUSTRY CLEAN AIR CLIMATE CLIMATE CHANGE CLIMATE POLICY CLIMATE RESEARCH CO2 COAL COMBUSTION COMPETITIVENESS CONTACT INFORMATION DISTRIBUTION OF ALLOWANCES EFFICIENT EQUIPMENT ELECTRIC POWER ELECTRIC UTILITIES ELECTRICITY ELECTRICITY DEMAND ELECTRICITY MARKETS ELECTRICITY PRICES EMISSION EMISSION LEVELS EMISSION REDUCTIONS EMISSION TRADING EMISSIONS EMISSIONS DATA EMISSIONS TRADING PROGRAMS EMPLOYMENT ENERGY COSTS ENERGY ECONOMICS ENERGY POLICY ENERGY-INTENSIVE MANUFACTURING ENVIRONMENTAL LAW ENVIRONMENTAL REGULATION ENVIRONMENTAL REGULATIONS EQUIPMENT EXOGENOUS SHOCKS FINANCIAL DATA FINANCIAL SUPPORT FOSSIL FOSSIL FUEL FREE ALLOCATION FUEL COST FUEL COSTS FUEL SWITCHING GLOBAL MARKET GREENHOUSE GREENHOUSE GAS GREENHOUSE GAS EMISSIONS GREENHOUSE GASES HEAT HEAT GENERATION HISTORICAL EMISSIONS INCOME INNOVATION INSTALLATION INSTALLATIONS INTERNATIONAL COMPETITION IRON IRON INDUSTRY JOBS LOW-CARBON MARKET PRICE MARKET SHARE MARKET SHARES MATERIAL METALS NATIONAL EMISSIONS NATURAL GAS NITROUS OXIDE OIL OIL REFINERIES OPEN ACCESS PETROCHEMICALS POWER GENERATION POWER GENERATION INDUSTRY POWER GENERATORS POWER INDUSTRY POWER PLANTS POWER SECTOR POWER SECTORS POWER STATIONS POWER UTILITIES PRICE INCREASE PRODUCTION OF ELECTRICITY PRODUCTION PROCESSES PRODUCTIVITY PROTOCOL REGISTRIES REGISTRY RESOURCE ECONOMICS RESULT RESULTS SO2 SULFUR SULFUR DIOXIDE TOTAL DEMAND TRADE SYSTEM TRANSACTION USES WEB The European Union Emissions Trading Scheme is the first international cap-and-trade program for carbon dioxide and the largest carbon pricing regime in the world. A significant concern over the Emissions Trading Scheme has been the potential impact on the competitiveness of industry. Using data on 5,873 firms in ten European countries during 2001-2009, this paper assesses the impact on three variables through which the effects on firm competitiveness may manifest -- unit material costs, employment and revenue. The analysis focuses on the three most heavily-emitting industries under the program -- power, cement, and iron and steel. Empirical results indicate that the Emissions Trading Scheme has had different impacts across these three sectors. Although no impacts are found on any of the three variables in the cement and iron and steel industries, a positive effect is found on both material costs and revenue in the power sector. The effect on material costs likely reflects fuel-switching to reduce carbon dioxide emissions, while that on revenue may be partly due to cost pass-through to consumers in a market that is less exposed to competition outside the Europen Union. Overall the findings do not substantiate concerns over carbon leakage, job loss or industry competitiveness during the study period. 2014-02-04T16:03:50Z 2014-02-04T16:03:50Z 2013-10 http://documents.worldbank.org/curated/en/2013/10/18412453/firm-competitiveness-european-union-emissions-trading-scheme http://hdl.handle.net/10986/16847 English en_US Policy Research Working Paper;No. 6662 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank World Bank, Washington, DC Publications & Research :: Policy Research Working Paper Publications & Research Europe and Central Asia European Union |
| repository_type |
Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English en_US |
| topic |
ABATEMENT ABATEMENT COSTS ABATEMENT OPTIONS ACID ACID RAIN ADVERSE IMPACT AGGREGATE LEVEL AIR POLLUTION ALLOCATION ALLOCATION OF ALLOWANCES ALLOCATION OF EMISSION ALLOWANCES ALLOCATION OF PERMITS ALLOWANCE ALLOWANCE ALLOCATION ALLOWANCE TRADING ANNUAL CAP APPROACH AUCTION BALANCE BANKING OF ALLOWANCES BUYER CARBON CARBON ALLOWANCES CARBON DIOXIDE CARBON DIOXIDE EMISSIONS CARBON EMISSIONS CARBON FUELS CARBON LEAKAGE CARBON MARKET CARBON PRICE CARBON REGULATION CARBON RESTRICTIONS CARBON TECHNOLOGIES CARBON TRADING CEMENT CEMENT INDUSTRY CLEAN AIR CLIMATE CLIMATE CHANGE CLIMATE POLICY CLIMATE RESEARCH CO2 COAL COMBUSTION COMPETITIVENESS CONTACT INFORMATION DISTRIBUTION OF ALLOWANCES EFFICIENT EQUIPMENT ELECTRIC POWER ELECTRIC UTILITIES ELECTRICITY ELECTRICITY DEMAND ELECTRICITY MARKETS ELECTRICITY PRICES EMISSION EMISSION LEVELS EMISSION REDUCTIONS EMISSION TRADING EMISSIONS EMISSIONS DATA EMISSIONS TRADING PROGRAMS EMPLOYMENT ENERGY COSTS ENERGY ECONOMICS ENERGY POLICY ENERGY-INTENSIVE MANUFACTURING ENVIRONMENTAL LAW ENVIRONMENTAL REGULATION ENVIRONMENTAL REGULATIONS EQUIPMENT EXOGENOUS SHOCKS FINANCIAL DATA FINANCIAL SUPPORT FOSSIL FOSSIL FUEL FREE ALLOCATION FUEL COST FUEL COSTS FUEL SWITCHING GLOBAL MARKET GREENHOUSE GREENHOUSE GAS GREENHOUSE GAS EMISSIONS GREENHOUSE GASES HEAT HEAT GENERATION HISTORICAL EMISSIONS INCOME INNOVATION INSTALLATION INSTALLATIONS INTERNATIONAL COMPETITION IRON IRON INDUSTRY JOBS LOW-CARBON MARKET PRICE MARKET SHARE MARKET SHARES MATERIAL METALS NATIONAL EMISSIONS NATURAL GAS NITROUS OXIDE OIL OIL REFINERIES OPEN ACCESS PETROCHEMICALS POWER GENERATION POWER GENERATION INDUSTRY POWER GENERATORS POWER INDUSTRY POWER PLANTS POWER SECTOR POWER SECTORS POWER STATIONS POWER UTILITIES PRICE INCREASE PRODUCTION OF ELECTRICITY PRODUCTION PROCESSES PRODUCTIVITY PROTOCOL REGISTRIES REGISTRY RESOURCE ECONOMICS RESULT RESULTS SO2 SULFUR SULFUR DIOXIDE TOTAL DEMAND TRADE SYSTEM TRANSACTION USES WEB |
| spellingShingle |
ABATEMENT ABATEMENT COSTS ABATEMENT OPTIONS ACID ACID RAIN ADVERSE IMPACT AGGREGATE LEVEL AIR POLLUTION ALLOCATION ALLOCATION OF ALLOWANCES ALLOCATION OF EMISSION ALLOWANCES ALLOCATION OF PERMITS ALLOWANCE ALLOWANCE ALLOCATION ALLOWANCE TRADING ANNUAL CAP APPROACH AUCTION BALANCE BANKING OF ALLOWANCES BUYER CARBON CARBON ALLOWANCES CARBON DIOXIDE CARBON DIOXIDE EMISSIONS CARBON EMISSIONS CARBON FUELS CARBON LEAKAGE CARBON MARKET CARBON PRICE CARBON REGULATION CARBON RESTRICTIONS CARBON TECHNOLOGIES CARBON TRADING CEMENT CEMENT INDUSTRY CLEAN AIR CLIMATE CLIMATE CHANGE CLIMATE POLICY CLIMATE RESEARCH CO2 COAL COMBUSTION COMPETITIVENESS CONTACT INFORMATION DISTRIBUTION OF ALLOWANCES EFFICIENT EQUIPMENT ELECTRIC POWER ELECTRIC UTILITIES ELECTRICITY ELECTRICITY DEMAND ELECTRICITY MARKETS ELECTRICITY PRICES EMISSION EMISSION LEVELS EMISSION REDUCTIONS EMISSION TRADING EMISSIONS EMISSIONS DATA EMISSIONS TRADING PROGRAMS EMPLOYMENT ENERGY COSTS ENERGY ECONOMICS ENERGY POLICY ENERGY-INTENSIVE MANUFACTURING ENVIRONMENTAL LAW ENVIRONMENTAL REGULATION ENVIRONMENTAL REGULATIONS EQUIPMENT EXOGENOUS SHOCKS FINANCIAL DATA FINANCIAL SUPPORT FOSSIL FOSSIL FUEL FREE ALLOCATION FUEL COST FUEL COSTS FUEL SWITCHING GLOBAL MARKET GREENHOUSE GREENHOUSE GAS GREENHOUSE GAS EMISSIONS GREENHOUSE GASES HEAT HEAT GENERATION HISTORICAL EMISSIONS INCOME INNOVATION INSTALLATION INSTALLATIONS INTERNATIONAL COMPETITION IRON IRON INDUSTRY JOBS LOW-CARBON MARKET PRICE MARKET SHARE MARKET SHARES MATERIAL METALS NATIONAL EMISSIONS NATURAL GAS NITROUS OXIDE OIL OIL REFINERIES OPEN ACCESS PETROCHEMICALS POWER GENERATION POWER GENERATION INDUSTRY POWER GENERATORS POWER INDUSTRY POWER PLANTS POWER SECTOR POWER SECTORS POWER STATIONS POWER UTILITIES PRICE INCREASE PRODUCTION OF ELECTRICITY PRODUCTION PROCESSES PRODUCTIVITY PROTOCOL REGISTRIES REGISTRY RESOURCE ECONOMICS RESULT RESULTS SO2 SULFUR SULFUR DIOXIDE TOTAL DEMAND TRADE SYSTEM TRANSACTION USES WEB Chan, Hei Sing Li, Shanjun Zhang, Fan Firm Competitiveness and the European Union Emissions Trading Scheme |
| geographic_facet |
Europe and Central Asia European Union |
| relation |
Policy Research Working Paper;No. 6662 |
| description |
The European Union Emissions Trading
Scheme is the first international cap-and-trade program for
carbon dioxide and the largest carbon pricing regime in the
world. A significant concern over the Emissions Trading
Scheme has been the potential impact on the competitiveness
of industry. Using data on 5,873 firms in ten European
countries during 2001-2009, this paper assesses the impact
on three variables through which the effects on firm
competitiveness may manifest -- unit material costs,
employment and revenue. The analysis focuses on the three
most heavily-emitting industries under the program -- power,
cement, and iron and steel. Empirical results indicate that
the Emissions Trading Scheme has had different impacts
across these three sectors. Although no impacts are found on
any of the three variables in the cement and iron and steel
industries, a positive effect is found on both material
costs and revenue in the power sector. The effect on
material costs likely reflects fuel-switching to reduce
carbon dioxide emissions, while that on revenue may be
partly due to cost pass-through to consumers in a market
that is less exposed to competition outside the Europen
Union. Overall the findings do not substantiate concerns
over carbon leakage, job loss or industry competitiveness
during the study period. |
| format |
Publications & Research :: Policy Research Working Paper |
| 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 |
World Bank, Washington, DC |
| publishDate |
2014 |
| url |
http://documents.worldbank.org/curated/en/2013/10/18412453/firm-competitiveness-european-union-emissions-trading-scheme http://hdl.handle.net/10986/16847 |
| _version_ |
1764434702326824960 |