The competitiveness of energy-intensive industries in EU’s last members, Dr. Hasan Agan Karaduman and Prof. Feride Doganer Gonel
Dr. Hasan Agan Karaduman and Prof. Feride Doganer Gonel
Department of Economics, 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.
Originality/value: 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 Union, EU, Energy-intensive, Industries, Climate Policy, Energy Policy, Revealed Comparative Advantage, RCA.