IDEAS home Printed from https://ideas.repec.org/p/rif/briefs/123.html
   My bibliography  Save this paper

Carbon Competitiveness is Shaped in Firms

Author

Listed:
  • Kaitila, Ville

Abstract

Greenhouse gas (GHG) emissions are now one factor that affects firms’ broader competitiveness. We analyse the development of emission intensities – GHG emissions relative to value added produced – at the level of industries in 2008–2020 in Europe. Finland’s carbon competitiveness, as measured by relative GHG-emission intensities, is average but varies by industries. Competitiveness is good in most industries, but it falls behind the EU27 average in agriculture, paper industry, construction, and land transportation, and behind Sweden and/or Germany also in basic metals, energy industry, and sewerage and waste management. We find that labour productivity is negatively associated with the level of and changes in GHG-emission intensities in Europe. Furthermore, higher investments, higher carbon prices within the ETS mechanism, and higher environmental taxes are associated with lower emission intensities. Consequently, policies that promote productivity growth and financial incentives to decrease emissions are likely to help reach lower emissions. See also Etla Report no 139 Labour Productivity and Development of Carbon Competitiveness: Industry-Level Evidence from Europe.

Suggested Citation

  • Kaitila, Ville, 2023. "Carbon Competitiveness is Shaped in Firms," ETLA Brief 123, The Research Institute of the Finnish Economy.
    • Handle: RePEc:rif:briefs:123
    as

    Download full text from publisher

    File URL: https://www.etla.fi/wp-content/uploads/ETLA-Muistio-Brief-123.pdf
    Download Restriction: no
    ---><---

    More about this item

    Keywords

    Greenhouse gas emissions; GHG-intensity; Carbon competitiveness; Productivity; ETS;
    All these keywords.

    JEL classification:

    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • O44 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Environment and Growth
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:rif:briefs:123. See general information about how to correct material in RePEc.

    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.

    We have no bibliographic references for this item. You can help adding them by using 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 RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Kaija Hyvönen-Rajecki (email available below). General contact details of provider: https://edirc.repec.org/data/etlaafi.html .

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

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.