Download This PaperUnderstanding the Competitiveness Implications of Future Phases of EU ETS on the Industrial Sectors
81 Pages Posted: 27 Jul 2010
Date Written: 2010
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
JEL Classification: C22, D40, H23
Suggested Citation: Suggested Citation
Do you have a job opening that you would like to promote on SSRN?
Recommended Papers
-
Rockets and Feathers Revisited: An International Comparison on European Gasoline Markets
By Matteo Manera, Marzio Galeotti, ...
-
Econometric Models of Asymmetric Price Transmission
By Matteo Manera and Giliola Frey
-
Asymmetric Error Correction Models for the Oil-Gasoline Price Relationship
By Matteo Manera and Margherita Grasso
-
Cost Pass-Through in the U.S. Coffee Industry
By Ephraim Leibtag, Alice Orcutt Nakamura, ...
-
Exchange Rate Pass-through in Central and Eastern European Member States
By John Beirne and Martin Bijsterbosch
-
Cost Pass-Through of the EU Emissions Allowances: Examining the European Petroleum Markets
-
Non-Linear Price Transmission Between Gasoline Prices and Crude Oil Prices
By Tigran Poghosyan and Gerard H. Kuper