Previously this year, a report was published suggesting that the EU industry had historically been able to pass through the costs of the EU ETS to final consumers. If this was true, it would suggest that the competitive position of EU industry was strong enough vis-à-vis foreign producers to allow price increases in the European products.
In our analysis, we show for the fertiliser industry that the above-mentioned report in fact fails to provide a credible answer to the question of whether prices have increased in response to increased ETS costs. This is due to a number of methodological and data related weaknesses in their econometric approach.
For further information, please contact Helge Sigurd Næss-Schmidt