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

Author

Ferguson, Shon and Sanctuary, Mark

Subjects
F18, Firm heterogeneity, Energy, Importing, Carbon leakage, ddc:330, D21
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.

Published
2014

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