Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/37078
Authors: 
Oberndorfer, Ulrich
Alexeeva-Talebi, Victoria
Löschel, Andreas
Year of Publication: 
2010
Series/Report no.: 
ZEW Discussion Papers 10-044
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.
Subjects: 
Emissions Trading
Competitiveness
Cost Pass-Through
JEL: 
C22
D40
H23
Document Type: 
Working Paper

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