Conference Agenda
Overview and details of the sessions of this conference. Please select a date or location to show only sessions at that day or location. Please select a single session for detailed view (with abstracts and downloads if available).
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Daily Overview |
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Egg-Timer: Trade and Climate Policy Location: D-112 Session Chair: Renfang Tian, King's University College at Western University | |
| Presentation 2 | |
What role do climate policies play in the circular economy? An analysis of the impact of carbon pricing on the trade of ferrous scrap in Europe 1: Dauphine Université, France; 2: Dauphine Université, France The European Emissions Trading System (EU ETS) exerts an increasing incentive to decarbonize the energy intensive sectors. For the iron and steel industry, a major abatement lever is a higher use of high-quality ferrous scrap, especially in electric arc furnaces (EAF). The supply for such scrap is however insufficient in the EU, eventually leading EU steel producers to import this scrap from foreign countries. With the the global demand for steel rising, high-quality scrap is becoming a most valuable material. In this paper, we assess the impact of the price of emission allowances on the imports and exports of ferrous scrap within the EU and with non-EU countries, according to scrap quality. We combine a gravity equation setting with a Difference-in-difference approach based a shift-share variable. We find that the differential impact of allowance price, based on EAF shares by country, is positive for imports of high-quality scrap from non-EU countries. It is also positive for exports of low-quality scrap to extra-EU countries. Both impacts are small but statistically significant. This confirms that ferrous scrap is becoming a strategically important material for the energy transition of EU steel industry. | |

