Differentiation and dynamics of competitiveness impacts from the EU ETS
AbstractWe summarises the main factors that differentiate impacts of the EU ETS on profitability and market share. By examining sampling a range of sectors, we present some simple metrics and indicators to help judge the nature of potential impacts. We also consider briefly the mitigation response to these impacts by sectors, and how they may evolve over time. The broad conclusion confirms the aggregate findings presented in the existing literature - most participating sectors are likely to profit under the current ETS structure out to 2012 at the cost of a modest loss of market share, but this may not hold for individual companies and regions. The period 2008-12 can assist participating sectors to build experience and financial reserves for longer term technology investments and diversification, providing the continuation and basic principles of the EU ETS post-2012 is quickly defined and incentives are in place for sectors to pursue this.
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.
Bibliographic InfoPaper provided by Faculty of Economics, University of Cambridge in its series Cambridge Working Papers in Economics with number 0712.
Date of creation: Mar 2007
Date of revision:
Contact details of provider:
Web page: http://www.econ.cam.ac.uk/index.htm
Emissions trading; industrial competitiveness; spillovers; allowance allocation; perverse incentives.;
Find related papers by JEL classification:
- Q52 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Pollution Control Costs; Distributional Effects; Employment Effects
- Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy
- F18 - International Economics - - Trade - - - Trade and Environment
This paper has been announced in the following NEP Reports:
- NEP-ALL-2007-06-02 (All new papers)
- NEP-CSE-2007-06-02 (Economics of Strategic Management)
- NEP-EEC-2007-06-02 (European Economics)
- NEP-ENE-2007-06-02 (Energy Economics)
- NEP-ENV-2007-06-02 (Environmental Economics)
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.:
- Sijm, J. & Neuhoff, K. & Chen, Y., 2006. "CO2 cost pass through and windfall profits in the power sector," Cambridge Working Papers in Economics 0639, Faculty of Economics, University of Cambridge.
- Rosendahl, Knut Einar, 2004.
"Cost-effective environmental policy: implications of induced technological change,"
Journal of Environmental Economics and Management,
Elsevier, vol. 48(3), pages 1099-1121, November.
- Knut Einar Rosendahl, 2002. "Cost-effective environmental policy: Implications of induced technological change," Discussion Papers 314, Research Department of Statistics Norway.
- Zhang, ZhongXiang & Baranzini, Andrea, 2000.
"What do we know about carbon taxes? an inquiry into their impacts on competitiveness and distribution of income,"
13225, University Library of Munich, Germany, revised Jan 2003.
- Zhang, ZhongXiang & Baranzini, Andrea, 2004. "What do we know about carbon taxes? An inquiry into their impacts on competitiveness and distribution of income," Energy Policy, Elsevier, vol. 32(4), pages 507-518, March.
- Palmer, Karen & Butraw, Dallas & Kahn, Danny, 2006. "Simple Rules for Targeting CO2 Allowance Allocations to Compensate Firms," Discussion Papers dp-06-28, Resources For the Future.
- Ralf Martin & Mirabelle Muûls & Laure B. de Preux & Ulrich J. Wagner, 2012.
"Industry compensation under relocation risk: a firm-level analysis of the EU Emissions Trading Scheme,"
Grantham Research Institute on Climate Change and the Environment Working Papers
85, Grantham Research Institute on Climate Change and the Environment.
- Ralf Martin & Mirabelle Muûls & Ulrich J. Wagner & Laure B. de Preux, 2012. "Industry Compensation Under Relocation Risk: A Firm-Level Analysis of the EU Emissions Trading Scheme," CEP Discussion Papers dp1150, Centre for Economic Performance, LSE.
- Ralf Martin & Mirabelle Muûls & Laure B. de Preux & Ulrich J. Wagner, 2013. "Industry Compensation Under Relocation Risk: A Firm-Level Analysis of the EU Emissions Trading Scheme," NBER Working Papers 19097, National Bureau of Economic Research, Inc.
- Barry Anderson & Jorg Leib & Ralf Martin & Marty McGuigan & Mirabelle Muûls & Ulrich J. Wagner & Laure B. de Preux, 2011.
"Climate Change Policy and Business in Europe. Evidence from Interviewing Managers,"
CEP Occasional Papers
027, Centre for Economic Performance, LSE.
- Barry Anderson & Jörg Leib & Ralf Martin & Marty McGuigan & Mirabelle Muuls & Laure de Preux & Ulrich J. Wagner, 2011. "Climate change policy and business in Europe: evidence from interviewing managers," LSE Research Online Documents on Economics 47493, London School of Economics and Political Science, LSE Library.
- Pablo del Río & Javier Carrillo-Hermosilla & Totti Könnölä & Carlos Suárez, 2008. "Challenges and opportunities of a post-Kyoto mitigation regime: a survey of the European electricity sector," Mitigation and Adaptation Strategies for Global Change, Springer, vol. 13(8), pages 863-885, October.
- Christoph Böhringer & Victoria Alexeeva-Talebi, 2011. "Unilateral climate policy and competitiveness: The implications of differential emission pricing," Working Papers V-338-11, University of Oldenburg, Department of Economics, revised Jun 2011.
- Michael Grubb, 2007. "The European Emissions Trading Scheme: An Overview of Operations and Lessons," CESifo DICE Report, Ifo Institute for Economic Research at the University of Munich, vol. 5(4), pages 17-25, 06.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Howard Cobb).
If references are entirely missing, you can add them using this form.