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Convergence of carbon dioxide performance across Swedish industrial sectors: An environmental index approach

Author

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  • Brännlund, Runar
  • Lundgren, Tommy
  • Söderholm, Patrik

Abstract

The overall objective of the paper is to analyze convergence of CO2 emission intensity across manufacturing sectors in Sweden. Our approach differs from previous work on carbon convergence in that it employs a theoretical framework to construct a CO2 performance index, which explicitly takes into account that industrial firms produce good as well as bad outputs. This index is then used as the dependent variable in a growth-type regression equation. We employ a data set covering 14 industrial sectors over the time period 1990–2008. The results suggest the presence of conditional β-convergence in CO2 performance among the industrial sectors in Sweden. Moreover, the speed of convergence varies significantly in the sense that the higher the capital intensity is, the lower is the convergence rate to the different steady states. This is likely to reflect the importance of – and in part the costs associated with – capital turnover to achieve a transition towards lower CO2 emission paths.

Suggested Citation

  • Brännlund, Runar & Lundgren, Tommy & Söderholm, Patrik, 2015. "Convergence of carbon dioxide performance across Swedish industrial sectors: An environmental index approach," Energy Economics, Elsevier, vol. 51(C), pages 227-235.
  • Handle: RePEc:eee:eneeco:v:51:y:2015:i:c:p:227-235
    DOI: 10.1016/j.eneco.2015.07.004
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    Cited by:

    1. repec:eee:eneeco:v:71:y:2018:i:c:p:140-148 is not listed on IDEAS
    2. Karimu, Amin & Brännlund, Runar & Lundgren, Tommy & Söderholm, Patrik, 2017. "Energy intensity and convergence in Swedish industry: A combined econometric and decomposition analysis," Energy Economics, Elsevier, vol. 62(C), pages 347-356.
    3. repec:eee:eneeco:v:63:y:2017:i:c:p:365-372 is not listed on IDEAS
    4. Brännlund Runar & Karimu Amin & Söderholm Patrik, 2017. "Convergence in carbon dioxide emissions and the role of growth and institutions: a parametric and non-parametric analysis," Environmental Economics and Policy Studies, Springer;Society for Environmental Economics and Policy Studies - SEEPS, vol. 19(2), pages 359-390, April.
    5. Karakaya, Etem & Yılmaz, Burcu & Alataş, Sedat, 2018. "How Production Based and Consumption Based Emissions Accounting Systems Change Climate Policy Analysis: The Case of CO2 Convergence," MPRA Paper 88781, University Library of Munich, Germany.
    6. repec:spr:envpol:v:20:y:2018:i:3:d:10.1007_s10018-017-0203-8 is not listed on IDEAS
    7. Grafström, Jonas, 2017. "An Econometric Analysis of Divergence of Renewable Energy Invention Efforts in Europe," Ratio Working Papers 295, The Ratio Institute.
    8. Grafström, Jonas & Söderholm, Patrik & Gawel, Erik & Lehmann, Paul & Strunz, Sebastian, 2017. "Knowledge Accumulation from Public Renewable Energy R&D in the European Union: Converging or Diverging Trends?," Ratio Working Papers 292, The Ratio Institute.

    More about this item

    Keywords

    Convergence; Carbon dioxide emission intensity; Industry; Sweden;

    JEL classification:

    • D22 - Microeconomics - - Production and Organizations - - - Firm Behavior: Empirical Analysis
    • Q01 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - General - - - Sustainable Development
    • Q40 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - General
    • Q48 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Government Policy
    • 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

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