Optimal carbon taxation in EU frontrunner countries: coordinating with the EU ETS and addressing leakage

Kruse‐Andersen, Peter K.; Sørensen, Peter Birch

doi:10.1080/14693062.2022.2145259

Cited by 8 publications

(1 citation statement)

References 9 publications

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“…Furthermore, the domestic government may worry about carbon leakage, and if the leakage rates differ between the ETS sector and the non-ETS sector -as they probably do, this gives further grounds for differentiating the total carbon price across the two sectors. We illustrate these points graphically below, inspired by the work of Kruse- Andersen and Sørensen (2022b) and building on the formal analysis in Appendix B…”

Section: Cost-effective National Climate Policy In An Eu Frontrunner ...mentioning

confidence: 99%

Nordic Economic Policy Review 2023: EU versus National Climate Policies in the Nordics

Flam¹,

Hassler²,

Silbye³

et al. 2023

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We analyse the extent to which the climate effect of unilateral climate policy in Nordic frontrunner countries may be nulli ied by the mechanics of the European Emission Trading System (ETS) in light of the recent tightening of the system. We ind that national initiatives to reduce emissions from the domestic ETS sector are likely to reduce total EU-wide emissions due to the endogeneity of the cap on ETS emission allowances. We also examine the cost-effective design of the unilateral climate policy of an EU frontrunner country, given the design of EU climate policy.Finally, we show that if the policy goal is to maximise national welfare, a uniform domestic carbon price across sectors is only optimal under special circumstances, and we highlight the importance of trade in emission rights and carbon leakage for optimal policy design.

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Section: Cost-effective National Climate Policy In An Eu Frontrunner ...mentioning

confidence: 99%

Nordic Economic Policy Review 2023: EU versus National Climate Policies in the Nordics

Flam¹,

Hassler²,

Silbye³

et al. 2023

View full text Add to dashboard Cite

show abstract

A breakthrough in achieving carbon neutrality in Poland: Integration of renewable energy sources and Poland's 2040 energy policy

Hassan,

Manowska,

Kienberger

2025

Energy Reports

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Carbon leakage in a small open economy: The importance of international climate policies

Beck¹,

Kruse‐Andersen

Stewart³

2023

Energy Economics

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Optimal carbon taxation in EU frontrunner countries: coordinating with the EU ETS and addressing leakage

Cited by 8 publications

References 9 publications

Nordic Economic Policy Review 2023: EU versus National Climate Policies in the Nordics

Nordic Economic Policy Review 2023: EU versus National Climate Policies in the Nordics

A breakthrough in achieving carbon neutrality in Poland: Integration of renewable energy sources and Poland's 2040 energy policy

Carbon leakage in a small open economy: The importance of international climate policies

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