A Scenario Analysis of the Potential Effects of Decarbonization on the Profitability of the Energy-Intensive and Natural-Resource-Based Industries
(2021) In Working Papers- Abstract
- 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.
Please use this url to cite or link to this publication:
https://lup.lub.lu.se/record/a2d4826f-fa79-4345-a8d9-ba1c4a10ca2b
- author
- Andersson, Fredrik N G LU
- organization
- publishing date
- 2021
- type
- Working paper/Preprint
- publication status
- published
- subject
- keywords
- decarbonization, energy-intensive, industry, profitability, investment, L60, L70, Q54
- in
- Working Papers
- issue
- 2021:18
- pages
- 36 pages
- language
- English
- LU publication?
- yes
- id
- a2d4826f-fa79-4345-a8d9-ba1c4a10ca2b
- date added to LUP
- 2022-01-28 14:13:29
- date last changed
- 2024-03-14 14:59:04
@misc{a2d4826f-fa79-4345-a8d9-ba1c4a10ca2b, abstract = {{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.}}, author = {{Andersson, Fredrik N G}}, keywords = {{decarbonization; energy-intensive; industry; profitability; investment; L60; L70; Q54}}, language = {{eng}}, note = {{Working Paper}}, number = {{2021:18}}, series = {{Working Papers}}, title = {{A Scenario Analysis of the Potential Effects of Decarbonization on the Profitability of the Energy-Intensive and Natural-Resource-Based Industries}}, url = {{https://lup.lub.lu.se/search/files/177122819/WP21_18.pdf}}, year = {{2021}}, }