European Emission Trading Scheme and competitiveness: A case study on the iron and steel industry

摘要: Abstract We quantify the impact of European Emission Trading Scheme (ETS) on two dimensions competitiveness – production and profitability for iron steel industry. Among those covered by scheme, this sector is one most exposed, since it both highly CO 2 -intensive relatively open to international trade. also examine robustness these results various assumptions: marginal abatement cost curve, trade demand elasticities, as well pass-through rates updating allocation rules, which latter are scarcely debated. conclude that sector, losses small. prove conclusion be robust. Hence arguments against tightening environmental stringency ETS in Phase II not justified grounds loss. Our systematic sensitivity analysis allows us identify important assumptions each output variable. It turns out rules significant, despite being often implicit least debated existing analyses.