Advanced Search
MyIDEAS: Login to save this article or follow this journal

Implications for competitiveness of the Estonian carbon­intensive industry post-2013

Contents:

Author Info

  • Jüri Kleesmaa

    ()
    (Tallinn School of Economics and Business Administration (TSEBA) at Tallinn University of Technology)

  • Marko Viiding

    ()
    (University of Tartu)

  • Eduard Latõšov

    ()
    (Tallinn School of Economics and Business Administration (TSEBA) at Tallinn University of Technology)

Registered author(s):

    Abstract

    From 2013 the total quantity of permitted CO2 emissions in the European Union will be decreasingly capped, putting pressure on their unit price. This in turn will influence carbon-intensive companies’ total costs and potentially affect profit margins. This article offers analysis of a small open country’s carbon-intensive firms’ variable cost sensitivity to CO2 prices at €15, €25 and €50 per tonne, using Estonia as a reference. The analysis reveals that firms using heavily carbon-intensive fuels (such as oil shale) could experience variable cost increase up to 100%. Although such fuel is primarily used in Estonia’s electricity generation, the biggest impact would hit the country’s mineral sector where carbon-intensive manufacturing faces on average a 20% variable cost change. Such companies could eventually move their activities outside the EU.

    Download Info

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
    File URL: http://biceps.org/assets/docs/bje/Marko.pdf
    Download Restriction: no

    Bibliographic Info

    Article provided by Baltic International Centre for Economic Policy Studies in its journal Baltic Journal of Economics.

    Volume (Year): 11 (2011)
    Issue (Month): 2 (December)
    Pages: 41-58

    as in new window
    Handle: RePEc:bic:journl:v:11:y:2011:i:2:p:41-58

    Contact details of provider:
    Postal: Strelnieku iela 4a, Riga, LV-1010
    Phone: +371 7039320
    Fax: +371 7039318
    Email:
    Web page: http://www.biceps.org
    More information through EDIRC

    Related research

    Keywords: CO2 emissions; energy-intensive industry; cost competitiveness; Estonia;

    Find related papers by JEL classification:

    References

    References listed on IDEAS
    Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
    as in new window
    1. Commins, Nicola & Lyons, Seán & Schiffbauer, Marc & Tol, Richard S. J., 2009. "Climate Policy and Corporate Behaviour," Papers WP329, Economic and Social Research Institute (ESRI).
    Full references (including those not matched with items on IDEAS)

    Citations

    Lists

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    Statistics

    Access and download statistics

    Corrections

    When requesting a correction, please mention this item's handle: RePEc:bic:journl:v:11:y:2011:i:2:p:41-58. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Lelde Ivankova).

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.