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Energy Prices and their Impact on the Competitiveness of the EU Steel Industry

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  • Peter Baláž
  • Juraj Bayer

Abstract

An essential part of the EU's growth strategy is support to its own international competitiveness. The reason is that the domestic industry is losing its former positions and is being pushed out of both domestic and international markets. Developments on the international steel market over the last year confirm that the market is likely to see significant changes as a result of protective measures. Most of them will jeopardise the international competitiveness of the European steel industry with negative impacts on its overall economic growth. The aim of this paper is to analyse the influence of energy prices and, based on an international comparison of production conditions, identify the comparative advantages of the EU in this segment. For this purpose, use will be made of the RCA indicator and other research methods. The authors formulate some statements concerning the future development of this sector and the conditions which need to be satisfied to boost its competitiveness.

Suggested Citation

  • Peter Baláž & Juraj Bayer, 2019. "Energy Prices and their Impact on the Competitiveness of the EU Steel Industry," Prague Economic Papers, Prague University of Economics and Business, vol. 2019(5), pages 547-566.
    • Handle: RePEc:prg:jnlpep:v:2019:y:2019:i:5:id:715:p:547-566
    DOI: 10.18267/j.pep.715
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    References listed on IDEAS

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    4. Gerster, Andreas, 2017. "Do electricity prices matter? Plant-level evidence from German manufacturing," Ruhr Economic Papers 672, RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen.
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    Cited by:

    1. Bożena Gajdzik & Radosław Wolniak & Wieslaw Wes Grebski, 2022. "An Econometric Model of the Operation of the Steel Industry in POLAND in the Context of Process Heat and Energy Consumption," Energies, MDPI, vol. 15(21), pages 1-26, October.
    2. László Török, 2023. "Effects of Energy Economic Variables on the Economic Growth of the European Union (2010–2019)," Energies, MDPI, vol. 16(16), pages 1-17, August.
    3. Stanislav Zabojník & Dusan Steinhauser & Viktoria Pestova, 2023. "EU Decarbonisation: Do EU Electricity Costs Harm Export Competitiveness?," The AMFITEATRU ECONOMIC journal, Academy of Economic Studies - Bucharest, Romania, vol. 25(63), pages 522-522, April.

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    More about this item

    Keywords

    competitiveness; energy security; european steel industry; international trade;
    All these keywords.

    JEL classification:

    • E62 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Fiscal Policy; Modern Monetary Theory
    • F01 - International Economics - - General - - - Global Outlook
    • F40 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - General

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