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Assessment of Different Approaches to Implementation of the IPPC Directive and Their Impacts on Competitiveness – Some Evidence from the Steel and Glass Industry

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F35.qxp 16.5.2007 09:40 Seite 1 35 ifo Forschungsberichte Assessment of different approaches to implementation of the IPPC Directive and their impacts on competitiveness – Some evidence from the steel and glass industry Study on behalf of the European Commission, DG Environment by Tilmann Rave Ursula Triebswetter Institut für Wirtschaftsforschung an der Universität München Bereich: Umwelt, Regionen und Verkehr Poschingerstraße 5 D-81679 München Tel. 089/92 24- 0 ifo Institute Fax 089/98 53 69 for Economic Research ENVIRONMENT, REGIONS AND TRANSPORT Assessment of different approaches to implementation of the IPPC Directive and their impacts on competitiveness – Some evidence from the steel and glass industry Study on behalf of the European Commission, DG Environment by Tilmann Rave and Ursula Triebswetter Munich, May 2007 Bibliografische Information Der Deutschen Bibliothek Die Deutsche Bibliothek verzeichnet diese Publikation in der Deutschen Nationalbibliografie; detaillierte bibliografische Daten sind im Internet über http://dnb.ddb.de abrufbar ISBN-10: 978-3-88512-462-7 ISBN-13: 978-3-88512-462-9 Alle Rechte, insbesondere das der Übersetzung in fremde Sprachen, vorbehalten. Ohne ausdrückliche Genehmigung des Verlags ist es auch nicht gestattet, dieses Buch oder Teile daraus auf photomechanischem Wege (Photokopie, Mikrokopie) oder auf andere Art zu vervielfältigen. © by ifo Institut für Wirtschaftsforschung, München 2007 Druck: ifo Institut für Wirtschaftsforschung, München ifo Institut für Wirtschaftsforschung im Internet: http://www.ifo.de 3 Table of Contents Index of Tables, Graphs and Boxes .............................................................................. 6 Acknowledgement ....................................................................................................................10 Executive summary..................................................................................................................11 PART I: General introduction....................................................................................... 15 1 Aim and scope of the study ......................................................................................15 2 Methodology................................................................................................................19 2.1 Basic approach ............................................................................................... 19 2.2 Conceptualising links between the IPPCD, IPPC implementation and competitiveness .............................................................................................. 21 2.3 Competition, competitive distortion, competitiveness and environmental stringency – Some clarifications on key terms................................................ 24 3 Previous literature ......................................................................................................30 3.1 The relationship between environmental regulation and competitiveness ...... 30 3.2 Existing literature on IPPC and competitiveness ............................................ 32 3.3 Basic hypotheses and considerations for data analysis.................................. 36 References (Chapters 1 to 3) ...................................................................................... 38 PART II: Broader analysis of the institutional context and potential competitiveness impacts ........................................................................................................... 42 4 Institutional and country-level analysis ...................................................................42 4.1 The similarity of national to the IPPC permitting regime ................................. 43 4.2 Differing administrative structures and resources ........................................... 45 4.3 Differences in the delivery of permitting and enforcement “on the ground”..... 50 4.4 Summary ........................................................................................................ 63 References (Chapter 4) ...........................................................................................................66 5 Review and analysis of the electric steelmaking sector in the EU .....................67 5.1 Introduction..................................................................................................... 67 5.2 Steel: The material, its production process and its applications...................... 67 5.2.1 The material.................................................................................................... 67 5.2.2 Production process ......................................................................................... 68 5.3 Overview of the electric steelmaking sector from an environmental perspective ...................................................................................................................... 70 5.4 Economic overview of the electric steelmaking sector.................................... 72 5.4.1 General economic overview............................................................................ 72 5.4.2 Production....................................................................................................... 75 5.4.3 Consumption................................................................................................... 77 5.4.4 Trade .............................................................................................................. 79 4 5.5 Supply and demand, market structure and competition.................................. 82 5.6 Indicators of competitiveness.......................................................................... 92 5.7 Main findings of electric steelmaking sector review ...................................... 118 References (Chapter 5)....................................................................................................... 120 6 Review and analysis of the domestic glass sector in the EU........................... 122 6.1 Introduction................................................................................................... 122 6.1.1 Main focus of the study................................................................................. 122 6.1.2 Arguments for choice of this sector............................................................... 122 6.2 Domestic Glass: The material, its production process and applications ....... 122 6.2.1 The material.................................................................................................. 122 6.2.2 The production process ................................................................................ 123 6.2.3 The applications............................................................................................ 127 6.3 Environmental overview of the domestic glass sector .................................. 128 6.3.1 Environmental impacts ................................................................................. 128 6.3.2 The IPPC Directive and domestic glass........................................................ 132 6.3.3 Differences in implementation....................................................................... 142 6.3.4 Main findings of technical overview of domestic glass sector ....................... 144 6.4 Economic overview of domestic glass sector................................................ 145 6.4.1 Foreword on terminology and data availability.............................................. 145 6.4.2 Economic significance of the domestic glass industry .................................. 146 6.4.3 Production..................................................................................................... 148 6.4.4 Consumption................................................................................................. 155 6.4.5 Market structure and competition.................................................................. 160 6.4.6 Main findings of glass sector economic overview ......................................... 170 References (Chapter 6)............................................................................................. 172 PART III: Case studies for electric steel and domestic glass..................................... 173 7 Analysis of survey and interview data for electric steelmaking steel sample 174 7.1 Introduction................................................................................................... 174 7.1.1 Research method and hypotheses ............................................................... 174 7.1.2 General overview of the sample ................................................................... 176 7.2 Analysis of plant specific factors potentially influencing the relationship between competitiveness and IPPC implementation .................................... 179 7.2.1 Input and output measures of competitive performance and their relationship with IPPC implementation – some broader comparisons ............................. 180 7.2.2 Intermediate measures approximating the impact of IPPC implementation on competitiveness ............................................................................................ 185 7.2.3 Case specific and qualitative analysis of competitive performance and their relationship with IPPC implementation ......................................................... 191 7.3 Analysis of institutional and country-specific factors in the implementation of IPPC and its link to competitiveness............................................................
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