Fredrik N G Andersson
Associate professor
A Scenario Analysis of the Potential Effects of Decarbonization on the Profitability of the Energy-Intensive and Natural-Resource-Based Industries
Author
Summary, in English
The decarbonization of the energy-intensive and natural-resourced-based industries is associated with large economic costs. In this paper, I explore how decarbonization may affect the profitability and market value of these industries and their ability to attract capital to fund their decarbonization. I also discuss the possibility of compensating for the investment costs through higher prices and enhanced productivity. I answer these questions using scenario analysis with a focus on the industries in the European Union and the United States. I find that the effects on profitability are likely to be modest despite relatively high investment costs.
Department/s
- Department of Economics
Publishing year
2021
Language
English
Publication/Series
Working Papers
Issue
2021:18
Full text
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Document type
Working paper
Topic
- Economics
Keywords
- decarbonization
- energy-intensive
- industry
- profitability
- investment
- L60
- L70
- Q54
Status
Published