Labour productivity and development of carbon competitiveness industry-level evidence from Europe

Bericht

A drastic decline in global greenhouse gas (GHG) emissions is needed to stop the climate change. This requires a variety of political and market mechanisms. Europe is globally at the forefront among the industrialised countries in reducing its GHG emissions. We analyse the development of emission intensities - GHG emissions relative to value added produced - and use a panel data to further our understanding of their evolution at the level of industries in 2008-2020 in Europe. We find that labour productivity is negatively associated with changes in GHG-emission intensities. Furthermore, higher investments, higher carbon prices within the ETS mechanism, and higher environmental taxes are associated with lower GHG-emission intensities. Consequently, policies that promote productivity growth and financial incentives to decrease emissions lead to lower emissions. Finland's carbon competitiveness, as measured by relative GHG-emission intensities, varies by industries.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: ETLA Report ; No. 139

Classification and Topics

• Classification: Wirtschaft ; Single Equation Models; Single Variables: Panel Data Models; Spatio-temporal Models ; Environment and Growth ; Climate; Natural Disasters and Their Management; Global Warming ; Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth
• Subject: Greenhouse gas emissions (GHG) ; GHG-intensity ; Carbon competitiveness ; Productivity ; ETS

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Ville, Kaitila
• Event: Veröffentlichung
• (who): The Research Institute of the Finnish Economy (ETLA)
• (where): Helsinki
• (when): 2023

Further information

• Handle: http://hdl.handle.net/10419/274233
• Last update: 10.03.2025, 11:43 AM CET