This paper examines the effect of energy costs on industry export competitiveness. Most studies in the literature use direct energy consumption (energy consumption at the final stage of production) and domestic energy prices to compute energy costs faced by domestic industries. Using...

The authors develop a model of environmental resource use in production with an empirical analysis of how electric power companies consume and bank sulfur dioxide pollution permits. The model considers emissions, fuels, and labor as variable inputs with quasi-fixed inputs of permits and capital....