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Firm Productivity and Carbon Leakage: A Study of Swedish Manufacturing Firms

Author

Listed:
  • Ferguson, Shon

    (Research Institute of Industrial Economics (IFN))

  • Sanctuary, Mark

    (Beijer Institute of Ecological Economics)

Abstract

This paper examines the intensive and extensive margins of carbon leakage. The analysis uses an increase in the Swedish electricity price to identify the impact on imports at the firm and product level. Our model of heterogenous firms predicts that higher domestic electricity prices lead firms to substitute towards imports of electricity-intense products.

Suggested Citation

  • Ferguson, Shon & Sanctuary, Mark, 2014. "Firm Productivity and Carbon Leakage: A Study of Swedish Manufacturing Firms," Working Paper Series 1035, Research Institute of Industrial Economics.
    • Handle: RePEc:hhs:iuiwop:1035
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    File URL: https://www.ifn.se/wfiles/wp/wp1035.pdf
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    References listed on IDEAS

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    Keywords

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    JEL classification:

    • D21 - Microeconomics - - Production and Organizations - - - Firm Behavior: Theory
    • F18 - International Economics - - Trade - - - Trade and Environment

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