In a recent report by the FT , an “independent consultant” is suggesting that a carbon tax would result in job losses in the US refining industry and relocations of the refieries to other countries. Well not so fast.
First of all this assumes that the refining Industry cannot pass on those costs. Have you noticed how fast gas prices go up when oil prices rise.
But Second in a study by Energy-Redfined both on refining and on the cement industry we found that you would need a carbon price of 30-90$/te. Not even the European carbon prices have reached this high . So what does this mean. Mass relocations are not likley to occur in the next five – ten or so years
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