TY - JOUR
T1 - The impact of electricity prices on European manufacturing jobs
AU - Bijnens, Gert
AU - Konings, Jozef
AU - Vanormelingen, Stijn
N1 - Funding Information:
This work was supported by grants from the Methusalem program (Flemish government) [3H150348]; the Support Center for Economics and Entrepreneurship (Flemish government, Dutch ‘Steunpunt Economie en Ondernemen’); and the Federation of Belgian Industrial Energy Consumers (Febeliec). The authors declare that they have no other relevant or material financial interests that relate to the research described in this paper. The research was conducted when the authors were employed by their respective research institutions.
Publisher Copyright:
© 2021 Informa UK Limited, trading as Taylor & Francis Group.
PY - 2022
Y1 - 2022
N2 - Increased investment in clean electricity in combination with a rising cost of carbon will most likely lead to higher electricity prices. We examine the impact from changing electricity prices on European manufacturing employment and find a negative elasticity for the most electricity-intensive sectors. Since these sectors are unevenly spread across countries and regions, the negative employment impact from increasing electricity prices will also be unevenly spread. Policymakers should be well aware of this and take mitigating actions to ensure a positive public sentiment towards environment-related price increases. (JEL J23, H23, Q28, Q43).
AB - Increased investment in clean electricity in combination with a rising cost of carbon will most likely lead to higher electricity prices. We examine the impact from changing electricity prices on European manufacturing employment and find a negative elasticity for the most electricity-intensive sectors. Since these sectors are unevenly spread across countries and regions, the negative employment impact from increasing electricity prices will also be unevenly spread. Policymakers should be well aware of this and take mitigating actions to ensure a positive public sentiment towards environment-related price increases. (JEL J23, H23, Q28, Q43).
KW - Electricity prices
KW - employment
KW - labour demand
KW - manufacturing industry
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U2 - 10.1080/00036846.2021.1951647
DO - 10.1080/00036846.2021.1951647
M3 - Article
AN - SCOPUS:85111796079
SN - 0003-6846
VL - 54
SP - 38
EP - 56
JO - Applied Economics
JF - Applied Economics
IS - 1
ER -