Outlook · Volume 14 · 2016

The competitiveness of energy-intensive industries in EU’s last members, Dr Hasan Agan Karaduman and Prof. Feride Doganer Gonel

Yildiz Technical University
Turkey
Yildiz Technical University
Turkey
Purpose

Despite the success in achieving the objectives for the use of renewable energy sources, the European Union’s (EU’s) competitiveness is not at the desired level. In particular, the largest decreases in fossil-type energy intensity were observed in last 13 members of EU. However, it is important to trace how these countries protect the competitiveness of their energy intensive industries.

Design/Methodology/Approach

The study uses Revealed Comparative Advantage (RCA) indices to measure the comparative advantage of EU-13 in energy-intensive industries for the period 1995—2014 and assesses these indices in the framework of EU’s climate policy.

Findings

Some policies which make industries to adapt EU’s 20-20-20 targets, are forcing industries. In order to compete, these industries are leaving Europe and looking elsewhere. In this study we found that, particularly chemicals and non-metallic mineral manufactures resulted in a weakening of their CA over the years in some of these members. Similarly it is found that the RCA indices of iron and steel and non-ferrous metals are decreasing.

Original/Value of the Paper

study addresses the EU-13’s position in terms of their competitiveness and find the connection with the EU’s climate policy through their RCA of energy-intensive industries.

Keywords
European UnionEUEnergy-intensiveIndustriesClimate PolicyEnergy PolicyRevealed Comparative AdvantageRCA
Citation

Karaduman, H. A., Gonel, F. D. (2016): The competitiveness of energy-intensive industries in EU's last members. In Ahmed, A. (Ed.): Europe at a Crossroads and the Impact of Globalization, Vol. 14, pp. 3-17.