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Climate Policy and Profit Efficiency
Umeå University, Faculty of Social Sciences, Umeå School of Business and Economics (USBE), Economics. Umeå University, Faculty of Social Sciences, Umeå School of Business and Economics (USBE), Business Administration. Umeå University, Faculty of Social Sciences, Center for Environmental and Resource Economics (CERE). Department of Forest Economics, Swedish University of Agricultural Sciences, Umeå.
Umeå University, Faculty of Social Sciences, Centre for Regional Science (CERUM). Umeå University, Faculty of Social Sciences, Center for Environmental and Resource Economics (CERE).
2010 (English)Report (Other academic)
Abstract [en]

As widely recognized, human mankind stands before the most challenging problem of preventing anthropogenic climate change. As a response to this, the European Union advocates an ambitious climate policy mix. However, there is no consensus concerning the impact of stringent environmental policy on firms’ competitiveness and profitability. From the traditional ‘static’ point of view there are productivity losses to be expected. On the other hand, the so called Porter hypothesis suggests the opposite; i.e., due to ‘dynamic’ effects, ambitious climate and energy policies within the EU could actually be beneficial to firms in terms of enhanced profitability and competitiveness. Based on Sweden’s manufacturing industry, our main purpose is to specifically assess the impact of the CO2 tax scheme of Sweden on firms’ profit efficiency. The empirical methodology is based on stochastic frontier estimations and, in general, the results suggest we can neither reject nor confirm the Porter hypothesis across industry sectors. Therefore, we do not generally confirm the argument of stringent environmental policies having positive dynamic effects that potentially offset costs related to environmental policy.

Place, publisher, year, edition, pages
Umeå: Department of Economics, Umeå Universitet , 2010. , 38 p.
Series
CERE Working Paper / CERE arbetsrapport, 2010:11
Keyword [en]
CO2 tax, efficiency, stochastic frontier analysis, Swedish industry
National Category
Economics
Identifiers
URN: urn:nbn:se:umu:diva-88444OAI: oai:DiVA.org:umu-88444DiVA: diva2:715700
Available from: 2014-05-06 Created: 2014-05-06 Last updated: 2014-05-15Bibliographically approved

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http://www.cere.se/sv/forskning/publikationer/116-publications/193-climate-policy-and-profit-efficiency.htmlhttp://www.cere.se/documents/wp/CERE_2010_11.pdf

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CiteExportLink to record
Permanent link

Direct link
Cite
Citation style
  • apa
  • ieee
  • modern-language-association-8th-edition
  • vancouver
  • Other style
More styles
Language
  • de-DE
  • en-GB
  • en-US
  • fi-FI
  • nn-NO
  • nn-NB
  • sv-SE
  • Other locale
More languages
Output format
  • html
  • text
  • asciidoc
  • rtf