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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 (2023) In Journal of Climate Finance 2.
Abstract
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.
Abstract (Swedish)
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.
Please use this url to cite or link to this publication:
author
organization
publishing date
type
Contribution to journal
publication status
published
subject
keywords
climate change, finance, European Union, decarbonisation, energy intensive industries, L6, L7, Q54
in
Journal of Climate Finance
volume
2
article number
100008
publisher
Elsevier
external identifiers
  • scopus:85177589985
ISSN
2949-7280
DOI
10.1016/j.jclimf.2023.100008
language
English
LU publication?
yes
id
b52b36df-ade1-421b-b095-c95f3849d9a2
date added to LUP
2023-03-26 08:35:14
date last changed
2024-12-25 04:01:05
@article{b52b36df-ade1-421b-b095-c95f3849d9a2,
  abstract     = {{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.}},
  author       = {{Andersson, Fredrik N G}},
  issn         = {{2949-7280}},
  keywords     = {{climate change; finance; European Union; decarbonisation; energy intensive industries; L6; L7; Q54}},
  language     = {{eng}},
  month        = {{03}},
  publisher    = {{Elsevier}},
  series       = {{Journal of Climate Finance}},
  title        = {{A scenario analysis of the potential effects of decarbonization on the profitability of the energy-intensive and natural-resource-based industries}},
  url          = {{http://dx.doi.org/10.1016/j.jclimf.2023.100008}},
  doi          = {{10.1016/j.jclimf.2023.100008}},
  volume       = {{2}},
  year         = {{2023}},
}