International Industry Competitiveness, Carbon Leakage, and Approaches to Carbon Pricing

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The synthesis paper to our project on International Industry Competitiveness, Carbon Leakage, andApproaches toCarbon Pricingsummarises the state of research undertaken by Climate Strategies on carbon leakage and
competitiveness, looking into the industries’ ability to pass through carbon costs and the extent to which carbon
pricing might affect future investment decisions.This sector-by-sector synthesis is conducted for steel, cement, aluminium, chemicals, and pulp and paper.

  • Which international trends determine demand, costs, and a
    company’s choice to locate its capacities?
  • What are the trade-offs between the carbon price and other costs of an
    industry?
  • What kind of policy is needed to facilitate investment in clean technology and to reduce investment
    risk?
Author: Susanne Droege
Year: 2012
Type: Final paper
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