THE IMPACT OF ELECTRICITY PRICES ON EUROPEAN MANUFACTURING JOBS
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Date
2022
Authors
Bijnens, Gert
Konings, Jozef
Vanormelingen, Stijn
Journal Title
Journal ISSN
Volume Title
Publisher
APPLIED ECONOMICS
Abstract
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)
Description
Keywords
Type of access: Open Access, Electricity Prices, Labour Demand, Employment, Manufacturing Industry
Citation
Bijnens, G., Konings, J., & Vanormelingen, S. (2021). The impact of electricity prices on European manufacturing jobs. Applied Economics, 54(1), 38–56. https://doi.org/10.1080/00036846.2021.1951647