Sulphur Directive – A New Long-Term Cost Driver for Nordic Export Industry

Abstract

EU Directive of MARPOL Annex VI and its economic impact on the Nordic paper industry is theme of this research work. Empirical data for analysis purposes was gained from a large Nordic paper mill that exports bulk products mainly to Europe (70 % of its volume). The study shows that in the end the industry&rsquo;s location still has an economical effect, and that the location has a distinct impact on competition through rising transportation costs. Environmental regulation continues and fosters long-term upwards trajectory of transportation cost, which has been experienced by the paper mill earlier during years 2001-2009.&nbsp;</p