BC3. Basque centre for climate change – Klima aldaketa ikergai

  1. Home
  2. Publications
  3. Policy Briefings


BC3 Working Papers

BC3 Policy Briefings

Carbon leakage and the future of Old Industrial Regions

Keywords: Climate Policy, Regional Economics, Basque Country, Relocation

Author(s): Mikel González-Eguino, Ibon Galarraga and Alberto Ansuategi

Date: 2010-08-07

Issue: 2010-02

  Download this Policy Briefings (161 KB.)

CO2 prices will continue to differ from one country to another even if a global post-Kyoto agreement is achieved. This may decrease the competitiveness of some industries. One of most exposed industries in Europe is iron and steel, as it is highly CO2-intensive and relatively open to international trade. Most studies estimate for this sector a level of relocation ranging from 1.5% to 35%. This might seem a relatively small macroeconomic impact if measured at country or EU level. However, the picture may be quite different if the analysis is conducted at sub-national level. Most of the studies conducted are applied to a large geographical scale when the fact is that in Europe this industry is highly concentrated in certain specific region, i.e.,. the so-called Old Industrial Regions (OIR). This paper seeks to analyze the impact that different levels of relocation of the iron and steel industry have in the OIRs.

<< Back to the PB list

We use cookies of our own and of third parties to improve our services and to be able to offer you, by means of web browsing analysis, the best options.
If you continue browsing, we assume that you agree to their use. For further information, please click here.