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Lindbom, Therese, 2022. Carbon leakage in the Steel Sector Accounting for Induced Technological Change and Spillover Effects : a Theoretical Analysis. Second cycle, A2E. Uppsala: SLU, Dept. of Economics



This analysis investigates the relationship between unilateral climate policy and the risk of carbon leakage in the steel sector. A simple analytical
macroeconomic model is employed to highlight the various parameters influencing the magnitude of carbon leakage. An extended version of the model
allows for assessing the impacts of induced technical change and technological spillover effects on the industry’s carbon leakage. A numerical illustration
using sector-specific parameters shows that the leakage rate within the steel
sector is 27%. Accounting for induced technological change and spillover effects reveals that higher rates of innovative activity reduce the risk of carbon
leakage within the sector. In the presence of technological spillover effects
under the assumption that the rate of technological change is 0.8, the carbon
leakage rate reduces to 5%. The impact of induced technological change on
carbon leakage in the steel industry implies that a global industrial network
empowering the expansion of new technologies has the potential to decrease
the industry’s overall emissions.

Main title:Carbon leakage in the Steel Sector Accounting for Induced Technological Change and Spillover Effects
Subtitle:a Theoretical Analysis
Authors:Lindbom, Therese
Supervisor:Ferguson, Shon
Examiner:Hart, Robert
Series:Examensarbete / SLU, Institutionen för ekonomi
Volume/Sequential designation:1490
Year of Publication:2022
Level and depth descriptor:Second cycle, A2E
Student's programme affiliation:NM005 Environmental Economics and Management - Master's Programme 120 HEC
Supervising department:(NL, NJ) > Dept. of Economics
Keywords:Unilateral climate policy, carbon leakage, energy-channel, induced technological change, technological spillover effects, steel sector
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Subject. Use of subject categories until 2023-04-30.:Pollution
Deposited On:16 Dec 2022 08:33
Metadata Last Modified:17 Dec 2022 02:00

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