Assessing alternative solutions to carbon leakage

Antimiani, Alessandro; Costantini, Valeria; Martini, Chiara; Salvatici, Luca; Tommasino, Maria Cristina

doi:10.1016/j.eneco.2012.08.042

Cited by 78 publications

(28 citation statements)

References 22 publications

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“…One implementation option of such a policy is the use of full border carbon adjustments (BCA). 48 There is a rich literature on both the possible effects of BCA 51,52,53,54,55,44 and on options for their practical implementation. 56,57,58,59 The exemption of exports from GHG pricing (as implemented within the EU ETS 60 for carbon intensive and trade-exposed industries) can be seen as an example of a partial BCA application.…”

Section: 45mentioning

confidence: 99%

Multiple carbon accounting to support just and effective climate policies

et al. 2015

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Negotiating greenhouse gas (GHG) emission reduction involves the allocation of emissions and of emission reductions to specific agents, and notably, within the current UN framework, to associated countries. As production takes place in supply chains, increasingly extending over several countries, there are various options available in which emissions originating from one and the same activity may be attributed to different agents along the supply chain and thus to different countries. In this way, several distinct types of national carbon accounts can be constructed. We argue that these accounts will typically differ as regards the information they provide to individual countries on the effects their actions have on global emissions; and they may also, to varying degrees, prove useful in supporting the pursuit of an effective and just climate policy. However, none of the accounting systems proves "best" in achieving these aims under real world circumstances; we thus suggest compiling reliable data to facilitate the consistent calculation of multiple carbon accounts on a global level.

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Section: 45mentioning

confidence: 99%

Multiple carbon accounting to support just and effective climate policies

et al. 2015

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“…The assessment of the size of carbon leakage and the effectiveness of anti-leakage measures is affected by many model characteristics and assumptions, including the type of economic model (Branger and Quirion, 2014), sectoral aggregation (Alexeeva-Talebi et al, 2012;Caron, 2012), inclusion of process emissions (Bednar-Friedl et al, 2012), assumptions on the supply of fossil energy (Sinn, 2008), endogenous technological change and diffusion (Gerlagh and Kuik, 2014), elasticity parameters (Antimiani et al, 2013) and the underlying theory of international trade (Balistreri and Rutherford, 2012).…”

Section: Review Of Literaturementioning

confidence: 99%

“…The first one introduces a BCA according to the modelling approach developed by Antimiani et al (2013) for a static setting, where equations are expressed in log linear form in order to represent the effects in terms of percentage change. The lower-case letters refer to derivatives whereas upper-case letters refer to variables in level.…”

Section: Model Details For Assessing the Impacts Of Eu Climate Policymentioning

confidence: 99%

Mitigation of adverse effects on competitiveness and leakage of unilateral EU climate policy: An assessment of policy instruments

Antimiani

Costantini

Kuik

et al. 2016

Ecological Economics

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a b s t r a c t a r t i c l e i n f oThe European Union (EU) has developed a strategy to mitigate climate change by cutting greenhouse gas (GHG) emissions and fostering low carbon technologies. However, the risk of implementing unilateral policies is that distortive effects are generated at the global scale affecting world energy prices, international competitiveness and the geographical allocation of carbon intensive production processes. Using a dynamic CGE model, we assess the rate of carbon leakage and adverse impacts on competitiveness in a number of scenarios over the period 2010-2050. According to the model results, we highlight two major issues. First, in the case of a unilateral EU climate policy, carbon leakage and negative effects on competitiveness are quite serious. Anti-leakage measures can only mitigate leakage and adverse economic impacts on competitiveness in a limited way. On the contrary, an optimality analysis addressing the environmental effectiveness, cost-effectiveness and political feasibility of alternative policy solutions reveals that the EU long term decarbonisation strategy by investing in energy efficiency and renewable energy might ensure protection of vulnerable manufacturing activities while enhancing the competitiveness of technologically-advanced industries.

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“…Carbon pricing increases the industry's cost, which raises concerns from an economic point of view (loss in competitiveness), but also from an environmental perspective (carbon leakage). There is considerable debate about the extent of carbon leakage and policy measures mitigating this phenomenon (e.g., Clò, 2010;Caron, 2012;Antimiani et al, 2012). But there are also considerations about positive interactions between decarbonisation and economic growth.…”

Section: Paradigm Shifts In Eu Energy Policymentioning

confidence: 99%

A strategic energy technology policy towards 2050: no-regret strategies for European technology push

Ruester

Schwenen

Finger

et al. 2013

IJETP

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Abstract:As current policy frameworks are expiring soon, the EU is revisiting its energy technology policy for the post-2020 horizon. The main long-run objective for energy technology policy is to foster the achievement of ambitious EU goals for decarbonisation. We discuss how European energy technology policy towards 2050 can be effective despite: 1) uncertain carbon prices; 2) uncertain technological change; and 3) uncertain or alternating policy paradigms shifting the focus from decarbonisation towards competitiveness or energy supply security. Public support to innovation in energy technologies is needed to correct for market failures and imperfections, as well as to fully exploit trade opportunities of such technologies on global markets. Benefits from EU intervention can be expected from the coordination of national policies. Effective European technology push should put strong emphasis on pushing consumption-oriented and enabling technologies, as these offer a no-regret strategy vis-à-vis any future context.

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Assessing alternative solutions to carbon leakage

Cited by 78 publications

References 22 publications

Multiple carbon accounting to support just and effective climate policies

Multiple carbon accounting to support just and effective climate policies

Mitigation of adverse effects on competitiveness and leakage of unilateral EU climate policy: An assessment of policy instruments

A strategic energy technology policy towards 2050: no-regret strategies for European technology push

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