IDEAS home Printed from https://ideas.repec.org/a/bic/journl/v11y2011i2p41-58.html

Implications for competitiveness of the Estonian carbon­intensive industry post-2013

Author

Listed:
  • 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)

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.

Suggested Citation

  • Jüri Kleesmaa & Marko Viiding & Eduard Latõšov, 2011. "Implications for competitiveness of the Estonian carbon­intensive industry post-2013," Baltic Journal of Economics, Baltic International Centre for Economic Policy Studies, vol. 11(2), pages 41-58, December.
    • Handle: RePEc:bic:journl:v:11:y:2011:i:2:p:41-58
    as

    Download full text from publisher

    File URL: https://www.tandfonline.com/doi/epdf/10.1080/1406099X.2011.10840500
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Commins, Nicola & Lyons, Se n & Schiffbauer, Marc & Tol, Richard S. J., 2009. "Climate Policy and Corporate Behaviour," Papers WP329, Economic and Social Research Institute (ESRI).
    2. Larry Martin & Randall Westgren & Erna van Duren, 1991. "Agribusiness Competitiveness across National Boundaries," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 73(5), pages 1456-1464.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Małgorzata Juchniewicz & Katarzyna Łukiewska, 2021. "Diversity of the international competitive performance of the food industry of the European Union member states," Agribusiness, John Wiley & Sons, Ltd., vol. 37(2), pages 422-437, April.
    2. Wang, Lijia & Huo, Xuexi, 2013. "Member Willingness to Invest in Agricultural Cooperatives in Shaanxi Province, China," Journal of Rural Cooperation, Hebrew University, Center for Agricultural Economic Research, vol. 41(2), pages 1-24.
    3. Lowe, Garfield G. & Davis, Carlton George, 2007. "CARICOM’s COMPETITIVENESS WITHIN THE US IMPORT MARKET FOR SPECIALTY CROPS: A SHIFT-SHARE ANALYSIS," 26th West Indies Agricultural Economics Conference, July 2006, San Juan, Puerto Rico 36922, Caribbean Agro-Economic Society.
    4. Ralf Martin & Mirabelle Mu?ls & Laure B. de Preux & Ulrich J. Wagner, 2014. "Industry Compensation under Relocation Risk: A Firm-Level Analysis of the EU Emissions Trading Scheme," American Economic Review, American Economic Association, vol. 104(8), pages 2482-2508, August.
    5. Katarzyna Lukiewska & Agnieszka Brelik, 2021. "A Model for Measuring the International Competitiveness of Furniture Industry in the European Union Countries," European Research Studies Journal, European Research Studies Journal, vol. 0(Special 2), pages 334-350.
    6. Weiss, Christoph R., 1999. "Flexibility and Competition in Food Manufacturing Industries," FE Working Papers 9901, Christian-Albrechts-University of Kiel, Department of Food Economics and Consumption Studies.
    7. Lutz, Benjamin Johannes, 2016. "Emissions trading and productivity: Firm-level evidence from German manufacturing," ZEW Discussion Papers 16-067, ZEW - Leibniz Centre for European Economic Research.
    8. Westgren, Randall E., 1995. "Firm Resources, Industrial Organization and Austrian Economics: The Bases for a New Strategic Management Approach to Competitiveness," 1994 Conference, August 22-29, 1994, Harare, Zimbabwe 183377, International Association of Agricultural Economists.
    9. Adeoye, I.B. & Oni, O.A., . "Competitiveness and Effects of Policies on Plantain Production Systems in Southwestern Nigeria," AGRIS on-line Papers in Economics and Informatics, Czech University of Life Sciences Prague, Faculty of Economics and Management, vol. 6(4), pages 1-11.
    10. Jaraitė, Jūratė & Kažukauskas, Andrius, 2013. "The profitability of electricity generating firms and policies promoting renewable energy," Energy Economics, Elsevier, vol. 40(C), pages 858-865.
    11. Deblitz, Claus, 2005. "Selected Results of the IFCN Beef Network," 15th Congress, Campinas SP, Brazil, August 14-19, 2005 24239, International Farm Management Association.
    12. Sarker, Rakhal & Ratnesena, Shashini, 2014. "Revealed Comparative Advantage and Half-A-Century Competitiveness of Canadian Agriculture: A Case Study of Wheat, Beef and Pork Sectors," Working Papers 165675, Canadian Agricultural Trade Policy Research Network.
    13. Frohberg, Klaus & Hartmann, Monika, 2001. "Konsequenzen Der Integration Im Agrar- Und Ernährungssektor Zwischen Beitrittslandern Und Eu-15," IAMO Discussion Papers 14888, Institute of Agricultural Development in Transition Economies (IAMO).
    14. Weiss, Christoph R., 2001. "Flexibility And Competition In U.S. Food Manufacturing Firms: Are Firms Too Inflexible?," 2001 Annual meeting, August 5-8, Chicago, IL 20596, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    15. Frohberg, Klaus & Hartmann, Monika, 1997. "Comparing Measures Of Competitiveness," IAMO Discussion Papers 14879, Institute of Agricultural Development in Transition Economies (IAMO).
    16. Bosello, Francesco & Davide, Marinella & Alloisio, Isabella, "undated". "Economic Implications of EU Mitigation Policies: Domestic and International Effects," EIA: Climate Change: Economic Impacts and Adaptation 234938, Fondazione Eni Enrico Mattei (FEEM).
    17. Brito, Marcel Moreira & Ferenc Istvan, Bánkuti & Sandra Mara Schiavi, Bánkuti & Geraldo, Tadeu dos Santos & Júlio César, Damasceno & Ely Mitie, Massuda, . "Horizontal Arrangements and Competitiveness of Small-Scale Dairy Farmers in Paraná, Brazil," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 18(4), pages 1-18.
    18. Kuhar, Ales & Erjavec, Emil & Borovsak, Katarina, "undated". "Restructuring Of The Slovenian Food Industry In The Pre - And Post Eu-Accession Period," 132nd Seminar, October 25-27, 2012, Skopje, Republic of Macedonia 139495, European Association of Agricultural Economists.
    19. Wieslawa Lizinska & Miroslaw Gornowicz & Tomasz Wierzejski, 2020. "International Competitive Position of the Polish Selected Food Markets," European Research Studies Journal, European Research Studies Journal, vol. 0(4), pages 1355-1370.
    20. Delbari, Seyyed Ali & Ng, Siew Imm & Aziz, Yuhanis Abdul & Ho, Jo Ann, 2016. "An investigation of key competitiveness indicators and drivers of full-service airlines using Delphi and AHP techniques," Journal of Air Transport Management, Elsevier, vol. 52(C), pages 23-34.

    More about this item

    Keywords

    ;
    ;
    ;
    ;

    JEL classification:

    • Q47 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy Forecasting
    • N70 - Economic History - - Economic History: Transport, International and Domestic Trade, Energy, and Other Services - - - General, International, or Comparative

    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:bic:journl:v:11:y:2011:i:2:p:41-58. 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.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc 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 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: Anna Zasova (email available below). General contact details of provider: https://edirc.repec.org/data/biceplv.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.