The Competitiveness Impacts of Climate Change Mitigation Policies

Scholarly Edition

We develop a precise definition of the competitiveness impacts of environmental regulation that can be estimated with available domestic production, trade, and energy price data. We use this definition and a 9-year panel of nearly 450 U.S. manufacturing industries to estimate and predict the effects of a U.S.-only $15 per ton CO2 price. We find competitiveness effects on the order of a 0.5 to 0.8 percent decline in production among energy-intensive manufacturing industries, representing about one-sixth of the policy's impacts on these firms' output.

Duke Authors

Cited Authors

  • Aldy, JE; Pizer, WA