This issue brief provides a summary of research on the effects of increases in domestic electricity prices on the structure of imports within firms and sectors. The research described involved statistical examination of a detailed firm-level data set for Swedish manufacturing, including the products imported and electricity prices paid from 1998 through 2007. The aim of the project was to help policymakers identify the role of international trade in situations where electricity supply is undergoing a major transformation and higher electricity prices are a possible outcome. In particular, the results highlight the importance of international trade in intermediate production inputs in maintaining the competitiveness of domestic firms.
