Carbon taxes and industrial competitiveness: evidence from energy-intensive industries in the Nordic region
Noakhali Science and Technology University · ETH Zurich · +4 more institutions
Abstract
The key question for open economies is how to maintain ambitious climate policy while remaining competitive in the industrial sector. Carbon taxes have been accused of increasing production costs while being a driver of efficiency and innovation. The Nordic region offers a severe experiment on this argument, as it has the highest carbon prices globally and depends highly on manufacturing exports. This study examines the relationships among carbon taxation, energy consumption, and industrial competitiveness in Nordic economies from 2000-2024. We estimate the joint effect of environmental policies and structural factors on export performance via panel econometric techniques. To examine this relationship, the…
Citation impact
- FWCI
- 44.15
- Percentile
- 98%
- References
- 59
Authors
6Topics & keywords
- Carbon tax
- Porter hypothesis
- Panel data
- Greenhouse gas
- Manufacturing
- Robustness (evolution)
- Production (economics)
- Endogeneity