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

Abstract

<p> <span style="font-family: TimesNewRomanPSMT; font-size: 11pt;">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;</span></p>