Scandinavian Working Papers in Economics

CERE Working Papers,
CERE - the Center for Environmental and Resource Economics

No 2010:8: Technical change, carbon dioxide reduction and energy consumption in the Swedish pulp and paper industry 1973-2006

Magnus Lindmark (), Ann-Kristin Bergquist () and Lars Fredrik Andersson ()
Additional contact information
Magnus Lindmark: CERE, Postal: Department of Economic History, Umeå University, Umeå SE-901-87, Sweden
Ann-Kristin Bergquist: CERE, Postal: Department of Economic History, Umeå University, Umeå SE-901-87, Sweden
Lars Fredrik Andersson: CERE, Postal: Department of Economic History, Umeå University, Umeå SE-901-87, Sweden

Abstract: This study examines the historical relation between carbon dioxide emission and output growth in the Swedish pulp and paperindustry 1973-2006. We find that the industry achieved an 80 per cent reduction in CO2 emission. Foremost energy substitution but also efficiently improvement contributed to the reduction. Growing prices of fossil fuel due to market price change and taxes and subvention, explains most of the efficiency improvements and substitution. Taxes on energy explain 40 per cent of the total reduction in CO2 intensity. Most of the reduction took place before the implementation of active climate policy in 1991.

Keywords: Sweden; Climate policy; economic growth; carbon dioxide reduction; carbon tax; paper and plant industry

JEL-codes: N54

17 pages, May 3, 2010

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