Understanding the competitiveness implications of future phases of EU ETS on the industrial sectors

Ulrich Oberndorfer, Victoria Alexeeva-Talebi and Andreas Löschel

No 10-044, ZEW Discussion Papers from ZEW - Leibniz Centre for European Economic Research

Abstract: In making key decisions for the future phases of the European Union Emissions Trading Scheme (EU ETS), policy makers need to fully understand the competitiveness implications of these decisions on industrial sectors. In this paper, we conduct an empirical analysis of cost pass-through ability of producers of selected products within the sectors refineries, glass, chemicals and ceramics of the UK economy. Our results provide new insights into the debate on the ability of pass-through of costs generated by the EU ETS. They suggest that some of the sectors analysed have the ability to pass-through a portion of their carbon costs to the consumers: The UK sectors are not capable to completely pass-through their costs into output prices, with the exception of UK ceramic goods.

Keywords: Emissions Trading; Competitiveness; Cost Pass-Through (search for similar items in EconPapers)
JEL-codes: C22 D40 H23 (search for similar items in EconPapers)
Date: 2010
New Economics Papers: this item is included in nep-cse, nep-ene, nep-env and nep-eur
References: View complete reference list from CitEc
Citations: View citations in EconPapers (13)

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Persistent link: https://EconPapers.repec.org/RePEc:zbw:zewdip:10044

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