Economic competitiveness

The Institute researches the economic impact of climate change and energy policies on businesses whose competitors are located in countries with less stringent environmental regulation.

Analysis by the Institute shows that UK climate change policies have so far had no adverse impacts on the competitiveness of UK industries. However, the possibility of competitiveness impacts in the future as a result of higher carbon prices cannot be ruled out. It is necessary to carefully identify which sectors are genuinely at risk of carbon leakage and target mitigating policy instruments at those sectors in line with the objective of achieving global emissions reductions.

Key publications: