The increased costs that may be required to reduce emissions in Sweden risk moving production and emissions abroad. At the same time, the costs can create incentives to use a greener technology, which can mean competitive advantages in the long run. SFL’s Dr Mark Sanctuary is one of three authors behind a forthcoming SNS report, which examines how great possible “leakage risks” are and what Swedish industries might be most exposed. The study provides an overview of the research situation and an analysis of the situation in Sweden.
Emissions can come to be transferred from Sweden to other countries in several ways. One way is that companies move production abroad, another is that domestic investments decrease to levels beneath what they would otherwise have been as investments instead increase in other countries with less strict environmental regulations. A third way is via the international fuel markets, as a lower demand for fossil fuel in one country tends to affect prices and increase consumption in others.
In their forthcoming SNS report, researchers Shon Ferguson, Rikard Forslid and Mark Sanctuary study the balance between industry and climate policy. The study provides an overview of the research situation and an analysis of the situation in Sweden.
At the launch seminar, the researchers present their conclusions and recommendations and discuss these together with Cecilia Hermansson from the Swedish Climate Policy Council, Karin Comstedt Webb from Cementa and Tomas Hirsch from SSAB.
The seminar is part of SNS’s research project on future energy systems.
Follow this link to read more and to sign up for the seminar.