On the determinants of industrial competitiveness: The European Union emission trading scheme and the Italian paper industry

This paper analyses whether and to what extent the EU-ETS may harm competitiveness, by following a qualitative approach, and presenting the case of the Italian paper industry, included in the system as an energy-intensive sector. More specifically, first the paper identifies those key factors that provide a qualitative measure of the “competitiveness risk” related to the EU-ETS; then, those factors are used to examine the Italian paper industry and to assess the actual and potential risks affecting the sector. This analysis is of interest given the lack of similar studies on the Italian paper industry and represents a starting point to serve further studies and future policymaking in Italy and Europe.