Scandinavian Working Papers in Economics

Working Papers in Economics,
University of Gothenburg, Department of Economics

No 22: The Determinants of Sulfur Emissions from Oil Consumption in Swedish Manufacturing Industry, 1976-1995

Henrik Hammar and Åsa Löfgren
Additional contact information
Henrik Hammar: Department of Economics, School of Economics and Commercial Law, Göteborg University, Postal: Department of Economics., School of Economics and Commercial Law, Göteborg University, Box 640, SE 40530 GÖTEBORG
Åsa Löfgren: Department of Economics, School of Economics and Commercial Law, Göteborg University, Postal: Department of Economics., School of Economics and Commercial Law, Göteborg University, Box 640, SE 40530 GÖTEBORG

Abstract: Using a structural decomposition analysis, we analyze the causes of reduction in emitted sulfur originating from the manufacturing industry in Sweden during 1976-1995. We also analyze how policy instruments work with respect to sulfur emissions. We conclude that the sulfur tax has been important for reducing sulfur emissions. It affects energy prices, and hence substitution from heavy fuel oil (HFO) to light fuel oil (LFO), as well as substitution from oil to other energy sources. The sulfur tax also addresses sulfur emissions through a reduction of sulfur content of oil directly.

Keywords: Sulfur emissions; decomposition analysis; oil consumption; manufacturing industry; sulfur tax; policy instruments; Sweden

JEL-codes: L60; Q41; Q48

20 pages, May 31, 2000

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