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Assessing Carbon Uncertainty: An empirical study of the effect of the EU´s CBAM on Multinationals strategic decision making

Verwei, Redmer Johan LU (2025) EKHS21 20251
Department of Economic History
Abstract
The EU’s Carbon Border Adjustment Mechanism has received growing scholarly attention. However, it’s impact on firm strategic behavior remains understudied. This thesis presents a qualitative interview-based research framework to capture private sector behavior. The study utilizes eight expert interviews conducted with firm employees and stakeholders and interprets these results through an
inductive approach. It highlights that the CBAM design lacks an export adjustment, is too small in scope, gives rise to circumvention and resource shuffling practices, and contains sector-specific loopholes. Therefore, it is unlikely that the CBAM in its current design will produce a level playing field. Consequently, amid wider uncertainty, firms... (More)
The EU’s Carbon Border Adjustment Mechanism has received growing scholarly attention. However, it’s impact on firm strategic behavior remains understudied. This thesis presents a qualitative interview-based research framework to capture private sector behavior. The study utilizes eight expert interviews conducted with firm employees and stakeholders and interprets these results through an
inductive approach. It highlights that the CBAM design lacks an export adjustment, is too small in scope, gives rise to circumvention and resource shuffling practices, and contains sector-specific loopholes. Therefore, it is unlikely that the CBAM in its current design will produce a level playing field. Consequently, amid wider uncertainty, firms demonstrate wait-and-see behavior. (Less)
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author
Verwei, Redmer Johan LU
supervisor
organization
course
EKHS21 20251
year
type
H1 - Master's Degree (One Year)
subject
keywords
CBAM, European climate policy, Climate economics, European Green Deal, Carbon Leakage, Firm behaviour, Abatement under uncertainty
language
English
id
9200541
date added to LUP
2025-06-17 14:26:56
date last changed
2025-06-17 14:26:56
@misc{9200541,
  abstract     = {{The EU’s Carbon Border Adjustment Mechanism has received growing scholarly attention. However, it’s impact on firm strategic behavior remains understudied. This thesis presents a qualitative interview-based research framework to capture private sector behavior. The study utilizes eight expert interviews conducted with firm employees and stakeholders and interprets these results through an 
inductive approach. It highlights that the CBAM design lacks an export adjustment, is too small in scope, gives rise to circumvention and resource shuffling practices, and contains sector-specific loopholes. Therefore, it is unlikely that the CBAM in its current design will produce a level playing field. Consequently, amid wider uncertainty, firms demonstrate wait-and-see behavior.}},
  author       = {{Verwei, Redmer Johan}},
  language     = {{eng}},
  note         = {{Student Paper}},
  title        = {{Assessing Carbon Uncertainty: An empirical study of the effect of the EU´s CBAM on Multinationals strategic decision making}},
  year         = {{2025}},
}