Effects on the manufacturing, utility and construction industries of decarbonization of the energy-intensive and natural resource-based industries
Decarbonizing the energy-intensive and natural resource-based industries is possible but may sub-stantially increase the cost of production. Whether such cost increases will reduce economic welfare depends on how the downstream industries respond to the higher cost for intermediate goods. In this paper, we explore how downstream industries in the EU15 responded to upstream carbon technology shocks
