The impact of electricity prices on European manufacturing jobs
Bijnens G. Konings J. Vanormelingen S.
2022Routledge
Applied Economics
2022#54Issue 138 - 56 pp.
Increased investment in clean electricity in combination with a rising cost of carbon will most likely lead to higher electricity prices. We examine the impact from changing electricity prices on European manufacturing employment and find a negative elasticity for the most electricity-intensive sectors. Since these sectors are unevenly spread across countries and regions, the negative employment impact from increasing electricity prices will also be unevenly spread. Policymakers should be well aware of this and take mitigating actions to ensure a positive public sentiment towards environment-related price increases. (JEL J23, H23, Q28, Q43).
Electricity prices , employment , labour demand , manufacturing industry
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Economics and Research Department, National Bank of Belgium, Brussels, Belgium
KU Leuven, Leuven, Belgium
University of Liverpool Management School, Liverpool, United Kingdom
Graduate School of Business, Nazarbayev University, Astana, Kazakhstan
Faculty of Economics Business, KU Leuven, Campus Brussels, Leuven, Belgium
Economics and Research Department
KU Leuven
University of Liverpool Management School
Graduate School of Business
Faculty of Economics Business
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