Micro-level structural change decomposition of carbon productivity
Application to electricity generation in Finland
Bibliographic Data
| ID | 11368123 |
|---|---|
| Authors | Natalia Kuosmanen (0000-0001-5258-5678, Research Institute of the Finnish Economy), Timo Kuosmanen (0000-0001-9232-5387, University of Turku, corresponding author), Terhi Maczulskij (0000-0002-4325-2254, Research Institute of the Finnish Economy) |
| Year | 2025 |
| Volume | 113 |
| Pages | 107877 |
| Publication date | 2025-06-01 |
| Peer Reviewed | Yes |
| Open Access | Yes |
| Type | ARTICLE |
| Venue | Environmental Impact Assessment Review (JOURNAL) |
| Journal identifiers | ISSN: 0195-9255 • E-ISSN: 1873-6432 |
| Publisher | Elsevier BV (PUBLISHER) |
| DOI | 10.1016/j.eiar.2025.107877 |
| OpenAlex | W4408020779 |
| Language | EN |
| Citations received | 1 |
| References cited | 41 |
The transition to renewable energy can lead to major structural changes within the energy sector: climate policies encourage the entry of cleaner producers while at the same time driving polluting firms out of the market. However, previous macro-level structural decompositions of carbon intensity and carbon productivity fail to capture the underlying micro-level dynamics, such as firm entry and exit, industry switching, and the reallocation of emissions between firms. The purpose of this study is to fill this gap by presenting a novel micro-level structural change decomposition of carbon productivity. Using comprehensive firm-level register data of the greenhouse gas emissions in the Finnish electricity generation industry in 2000–2019, we find that more efficient allocation of carbon emissions across firms was the main driver of carbon productivity growth in Finnish electricity generation during the study period. We also find that structural change, especially the entry of new firms, played a significant role in the carbon productivity development of this industry. • We analyze carbon productivity of Finnish electricity generation in 2000–2019. • Comprehensive firm-level register data of CO 2 emissions are used. • More efficient allocation of emissions across firms drove productivity growth. • Entry of new firms contributed to carbon productivity growth. • Our results support emissions trading as an effective policy instrument
Agricultural economics · Agricultural engineering · Carbon fibers · Decomposition · Economics · Electricity · Electricity generation · Natural resource economics · Power (physics · Productivity · Chemistry · Climate Change Policy and Economics · Engineering · Environmental Impact and Sustainability · Environmental Science · Integrated Energy Systems Optimization · Materials Science
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| Unique citing works | 1 |
|---|---|
| Citations per year | 1 |
| Citation span | 2026 - 2026 (1) |
| Citation velocity | current |
| Highly cited | No |
| Citation types | Neutral: 1 |