By a News Reporter-Staff News Editor at Energy Weekly News -- Investigators publish new report on Energy Policy. According to news reporting out of Washington, District of Columbia, by VerticalNews editors, research stated, "The European Union Emissions Trading Scheme is the first international cap-and-trade program for CO2 and the largest carbon pricing regime in the world. A principle concern over the Emissions Trading Scheme is the potential impact on the competitiveness of industry."
Our news journalists obtained a quote from the research from World Bank, "Using a panel of 5873 firms in 10 European countries during 2001-2009, this paper seeks to assess the impact of the carbon regulation on three variables through which the effects on firm competitiveness may manifest unit material costs, employment and revenue. Our analysis focuses on three most polluting industries covered under the program-power, cement, and iron and steel. Empirical results indicate that the emissions trading program had different impacts across these three sectors. While no impacts are found on any of the three variables in cement and iron and steel industries, our analysis suggests a positive effect on both material costs and revenue in the power sector: the effect on material costs likely reflects the costs to comply with emissions constraints or other parallel renewable incentive programs while that on revenue may partly due to cost pass-through to consumers in a market less exposed to competition outside EU."
According to the news editors, the research concluded: "Overall our findings do not substantiate concerns over carbon leakage, job loss and industry competitiveness at least during the study period."
For more information on this research see: Firm competitiveness and the European Union emissions trading scheme. Energy Policy, 2013;63():1056-1064. Energy Policy can be contacted at: Elsevier Sci Ltd, The Boulevard, Langford Lane, Kidlington, Oxford OX5 1GB, Oxon, England. (Elsevier - www.elsevier.com; Energy Policy - www.elsevier.com/wps/product/cws_home/30414)
Our news journalists report that additional information may be obtained by contacting H.S. Chan, World Bank, Washington, DC 20006, United States. Additional authors for this research include S.J. Li and F. Zhang.
Keywords for this news article include: Washington, United States, Energy Policy, District of Columbia, North and Central America
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