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dc.contributor.authorSkelton, Alexandraen
dc.contributor.authorAllwood, Julianen
dc.date.accessioned2017-05-19T14:53:11Z
dc.date.available2017-05-19T14:53:11Z
dc.date.issued2017-06-13en
dc.identifier.issn1364-503X
dc.identifier.urihttps://www.repository.cam.ac.uk/handle/1810/264320
dc.description.abstractThis article explores whether a carbon price will effectively encourage the more efficient use of greenhouse gas intensive materials such as steel. The article identifies a range of distortions that arise when some of the restrictive assumptions of neoclassical economics are relaxed. Distortions occur due to the sequential nature of decision-making along supply chains, due to imperfect competition and due to government intervention to reduce the risk of carbon leakage. If upstream sectors do not pass on carbon costs, downstream sectors do not have the opportunity to react. Of the distortions identified, compensation mechanisms that reduce the risk of carbon leakage are likely to act as the greatest hinderance to appropriate incentives for the more efficient use of steel in the UK: as things currently stand, unless upstream companies are encouraged to make windfall profits, incentives downstream are weakened. The article concludes by exploring policy options to address the distortions identified, including efforts to reinstate the carbon price downstream and efforts to remove other distortive taxes.
dc.description.sponsorshipThis article was funded by the EPSRC wholeSEM consortium (EP/K039326/1).
dc.languageengen
dc.language.isoenen
dc.publisherRoyal Society Publishing
dc.rightsAttribution 4.0 Internationalen
dc.rightsAttribution 4.0 Internationalen
dc.rightsAttribution 4.0 Internationalen
dc.rights.urihttp://creativecommons.org/licenses/by/4.0/en
dc.rights.urihttp://creativecommons.org/licenses/by/4.0/en
dc.rights.urihttp://creativecommons.org/licenses/by/4.0/en
dc.subjectmaterial efficiencyen
dc.subjectcost pass-throughen
dc.subjectsteelen
dc.titleThe carbon price: a toothless tool for material efficiency?en
dc.typeArticle
prism.number2095en
prism.publicationDate2017en
prism.publicationNamePhilosophical Transactions of the Royal Society A: Mathematical, Physical and Engineering Sciencesen
prism.volume375en
dc.identifier.doi10.17863/CAM.9787
dcterms.dateAccepted2017-03-06en
rioxxterms.versionofrecord10.1098/rsta.2016.0374en
rioxxterms.versionVoRen
rioxxterms.licenseref.urihttp://creativecommons.org/licenses/by/4.0/en
rioxxterms.licenseref.startdate2017-06-13en
dc.contributor.orcidSkelton, Alexandra [0000-0001-6402-4528]
dc.contributor.orcidAllwood, Julian [0000-0003-0931-3831]
dc.identifier.eissn1471-2962
rioxxterms.typeJournal Article/Reviewen
pubs.funder-project-idEPSRC (EP/N02351X/1)
pubs.funder-project-idEPSRC (via University College London (UCL)) (EP/K039326/1)
cam.issuedOnline2017-05-01en


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Attribution 4.0 International
Except where otherwise noted, this item's licence is described as Attribution 4.0 International