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

Shon Ferguson and Mark Sanctuary

No 1035, Working Paper Series from Research Institute of Industrial 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.

Keywords: Firm heterogeneity; Carbon leakage; Energy; Importing (search for similar items in EconPapers)
JEL-codes: D21 F18 (search for similar items in EconPapers)
Pages: 31 pages
Date: 2014-08-12
New Economics Papers: this item is included in nep-bec, nep-eff, nep-ene and nep-eur
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Persistent link: https://EconPapers.repec.org/RePEc:hhs:iuiwop:1035

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