The near-term impacts of carbon mitigation policies on manufacturing industries
AbstractWho will pay for new policies to reduce carbon dioxide and other greenhouse gas emissions in the United States? This paper considers a slice of the question by examining the near-term impact on domestic manufacturing industries of both upstream (economy-wide) and downstream (electric power industry only) carbon mitigation policies. Detailed Census data on the electricity use of four-digit manufacturing industries is combined with input-output information on interindustry purchases to paint a detailed picture of carbon use, including effects on final demand. This approach, which freezes capital and other inputs at current levels and assumes that all costs are passed forward, yields upper-bound estimates of total costs. The results are best viewed as descriptive of the relative burdens within the manufacturing sector rather than as a measure of absolute costs. Overall, the principal conclusion is that within the manufacturing sector (which by definition excludes coal production and electricity generation), only a small number of industries would bear a disproportionate short-term burden of a carbon tax or similar policy. Not surprisingly, an electricity-only policy affects very different manufacturing industries than an economy-wide carbon tax.
Download InfoIf 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.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Bibliographic InfoArticle provided by Elsevier in its journal Energy Policy.
Volume (Year): 32 (2004)
Issue (Month): 16 (November)
Contact details of provider:
Web page: http://www.elsevier.com/locate/enpol
Other versions of this item:
- Morgenstern, Richard & Shih, Jhih-Shyang & Ho, Mun & Zhang, Xuehua, 2002. "The Near-Term Impacts of Carbon Mitigation Policies on Manufacturing Industries," Discussion Papers dp-02-06-, Resources For the Future.
- Q28 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Government Policy
- Q48 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Government Policy
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.:
- Jorgenson, D.W. & Wilcoxen, P.J., 1992.
"Reducing US Carbon Dioxide Emissions: An Assessment of Different Instruments,"
Harvard Institute of Economic Research Working Papers
1590, Harvard - Institute of Economic Research.
- Jorgenson, Dale W. & Wilcoxen, Peter J., 1993. "Reducing U.S. carbon dioxide emissions: an assessment of different instruments," Journal of Policy Modeling, Elsevier, vol. 15(5-6), pages 491-520.
- Burtraw, Dallas & Palmer, Karen & Bharvirkar, Ranjit & Paul, Anthony, 2001. "The Effect of Allowance Allocation on the Cost of Carbon Emission Trading," Discussion Papers dp-01-30-, Resources For the Future.
- Ruth, Matthias & Davidsdottir, Brynhildur & Laitner, Skip, 2000. "Impacts of market-based climate change policies on the US pulp and paper industry," Energy Policy, Elsevier, vol. 28(4), pages 259-270, April.
- Richard D. Morgenstern & William A. Pizer & Jhih-Shyang Shih, 2001.
"The Cost Of Environmental Protection,"
The Review of Economics and Statistics,
MIT Press, vol. 83(4), pages 732-738, November.
- Koomey, Jonathan G. & Webber, Carrie A. & Atkinson, Celina S. & Nicholls, Andrew, 2001. "Addressing energy-related challenges for the US buildings sector: results from the clean energy futures study," Energy Policy, Elsevier, vol. 29(14), pages 1209-1221, November.
- Sanstad, Alan H. & DeCanio, Stephen J. & Boyd, Gale A. & Koomey, Jonathan G., 2001. "Estimating bounds on the economy-wide effects of the CEF policy scenarios," Energy Policy, Elsevier, vol. 29(14), pages 1299-1311, November.
- Farrelly, Damien J. & Everard, Colm D. & Fagan, Colette C. & McDonnell, Kevin P., 2013. "Carbon sequestration and the role of biological carbon mitigation: A review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 21(C), pages 712-727.
- Ho, Mun S. & Morgenstern, Richard & Shih, Jhih-Shyang, 2008. "Impact of Carbon Price Policies on U.S. Industry," Discussion Papers dp-08-37, Resources For the Future.
- Bassi, Andrea M. & Yudken, Joel S. & Ruth, Matthias, 2009. "Climate policy impacts on the competitiveness of energy-intensive manufacturing sectors," Energy Policy, Elsevier, vol. 37(8), pages 3052-3060, August.
- Sugino, Makoto & Arimura, Toshi H. & Morgenstern, Richard D., 2013. "The effects of alternative carbon mitigation policies on Japanese industries," Energy Policy, Elsevier, vol. 62(C), pages 1254-1267.
- Santamaría, Alberto & Linares, Pedro & Pintos, Pablo, 2014. "The effects of carbon prices and anti-leakage policies on selected industrial sectors in Spain – Cement, steel and oil refining," Energy Policy, Elsevier, vol. 65(C), pages 708-717.
- Parry, Ian, 2003.
"Are Emissions Permits Regressive?,"
dp-03-21, Resources For the Future.
- Sugino, Makoto & Arimura, Toshi H. & Morgenstern, Richard, 2012. "The Impact on Japanese Industry of Alternative Carbon Mitigation Policies," Discussion Papers dp-12-17, Resources For the Future.
- Eimear Leahy & Sean Lyons & Edgar L.W. Morgenroth & Richard S.J. Tol, . "The Spatial Incidence of a Carbon Tax in Ireland," Working Papers FNU-174, Research unit Sustainability and Global Change, Hamburg University.
- Skelton, Alexandra C.H. & Allwood, Julian M., 2013. "The incentives for supply chain collaboration to improve material efficiency in the use of steel: An analysis using input output techniques," Ecological Economics, Elsevier, vol. 89(C), pages 33-42.
- Corbett Grainger & Charles Kolstad, 2010.
"Who Pays a Price on Carbon?,"
Environmental & Resource Economics,
European Association of Environmental and Resource Economists, vol. 46(3), pages 359-376, July.
- Kerkhof, Annemarie C. & Moll, Henri C. & Drissen, Eric & Wilting, Harry C., 2008. "Taxation of multiple greenhouse gases and the effects on income distribution: A case study of the Netherlands," Ecological Economics, Elsevier, vol. 67(2), pages 318-326, September.
- Liwayway Adkins & Richard Garbaccio & Mun Ho & Eric Moore & Richard Morgenstern, 2012.
"Carbon Pricing with Output-Based Subsidies: Impacts on U.S. Industries over Multiple Time Frames,"
NCEE Working Paper Series
201203, National Center for Environmental Economics, U.S. Environmental Protection Agency, revised May 2012.
- Adkins, Liwayway & Garbaccio, Richard & Ho, Mun & Moore, Eric & Morgenstern, Richard, 2012. "Carbon Pricing with Output-Based Subsidies: Impacts on U.S. Industries over Multiple Time Frames," Discussion Papers dp-12-27, Resources For the Future.
- Bassi, Andrea M. & Yudken, Joel S., 2011. "Climate policy and energy-intensive manufacturing: A comprehensive analysis of the effectiveness of cost mitigation provisions in the American Energy and Security Act of 2009," Energy Policy, Elsevier, vol. 39(9), pages 4920-4931, September.
- Misato Sato & Karsten Neuhoff & Verena Graichen & Katja Schumacher & Felix Matthes, 2013. "Sectors under scrutiny – Evaluation of indicators to assess the risk of carbon leakage in the UK and Germany," Grantham Research Institute on Climate Change and the Environment Working Papers 113, Grantham Research Institute on Climate Change and the Environment.
- Bartleet, Matthew & Iyer, Kris & Lawrence, Gillian & Numan-Parsons, Elisabeth & Stroombergen, Adolf, 2009. "Impact of emissions pricing on New Zealand manufacturing: A short-run analysis," Occasional Papers 10/2, Ministry of Economic Development, New Zealand.
- Choi, Jun-Ki & Bakshi, Bhavik R. & Haab, Timothy, 2010. "Effects of a carbon price in the U.S. on economic sectors, resource use, and emissions: An input-output approach," Energy Policy, Elsevier, vol. 38(7), pages 3527-3536, July.
- Adkins, Liwayway & Garbaccio, Richard & Ho, Mun & Moore, Eric & Morgenstern, Richard, 2010. "The Impact on U.S. Industries of Carbon Prices with Output-Based Rebates over Multiple Time Frames," Discussion Papers dp-10-47, Resources For the Future.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Zhang, Lei).
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.