Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/260338 
Year of Publication: 
2021
Series/Report no.: 
Working Paper No. 2021:18
Publisher: 
Lund University, School of Economics and Management, Department of Economics, Lund
Abstract: 
The decarbonization of the energy-intensive and natural-resourced-based industries is associated with large economic costs. In this paper, I explore how decarbonization may affect the profitability and market value of these industries and their ability to attract capital to fund their decarbonization. I also discuss the possibility of compensating for the investment costs through higher prices and enhanced productivity. I answer these questions using scenario analysis with a focus on the industries in the European Union and the United States. I find that the effects on profitability are likely to be modest despite relatively high investment costs.
Subjects: 
decarbonization
energy-intensive
industry
profitability
investment
JEL: 
L60
L70
Q54
Document Type: 
Working Paper

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