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Fredrik NG Andersson. Photo.

Fredrik N G Andersson

Associate professor

Fredrik NG Andersson. Photo.

A scenario analysis of the potential effects of decarbonization on the profitability of the energy-intensive and natural-resource-based industries

Author

  • Fredrik N G Andersson

Summary, in English

The decarbonization of the energy-intensive and natural-resourced-based industries is associated with potentially large economic costs. In this paper, I explore how decarbonization may affect the profitability and market value of these industries. 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
  • LU Profile Area: Nature-based future solutions

Publishing year

2023-03-30

Language

English

Publication/Series

Journal of Climate Finance

Volume

2

Document type

Journal article

Publisher

Elsevier

Topic

  • Economics

Keywords

  • climate change
  • finance
  • European Union
  • decarbonisation
  • energy intensive industries
  • L6
  • L7
  • Q54

Status

Published

ISBN/ISSN/Other

  • ISSN: 2949-7280