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A Scenario Analysis of the Potential Effects of Decarbonization on the Profitability of the Energy-Intensive and Natural-Resource-Based Industries

Andersson, Fredrik N G LU (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:
author
organization
publishing date
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}},
}