Targeted carbon tariffs: Export response, leakage and welfare

Böhringer, Christoph; Bye, Brita; Fæhn, Taran; Rosendahl, Knut Einar

doi:10.1016/j.reseneeco.2017.06.003

Cited by 36 publications

(15 citation statements)

References 20 publications

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“…Therefore, they are often perceived to be more effective at reducing leakage (Caron, 2012). Firm-targeted carbon tariffs deliver larger leakage reduction and global welfare gains (Böhringer et al, 2017). The policy of combining a consumption tax and an output-based rebate can be equivalent to a border carbon adjustment and is a robust policy to mitigate carbon leakage.…”

Section: Literature Reviewmentioning

confidence: 99%

A dynamic and continuous allowances allocation methodology for the prevention of carbon leakage: Emission control coefficients

et al. 2019

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Carbon leakage has become the core issue of emission trading systems. Using data from Hubei Province, this paper identifies the drawbacks of the prevailing methods for preventing carbon leakage and proposes a new methodology to overcome them, namely, Emission Control Coefficients. In contrast to the common tiered structure method, we found that Emission Control Coefficients generate a dynamic and continuous emission control coefficient for each industry which will improve the effectiveness and fairness of allowance allocation, set aside sufficient time for the low carbon transformation of industries, and balance the needs to protect competitiveness and decarbonize and are particularly suitable for the emission trading systems of developing counties. This paper makes three main academic contributions: Firstly, this paper proposes a new indicator, the abatement potential. Secondly, this paper better distinguishes industrial differences. Thirdly, this paper can better respond to the problem of excess allowances due to technological advances and trade pattern changes.

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Section: Literature Reviewmentioning

confidence: 99%

A dynamic and continuous allowances allocation methodology for the prevention of carbon leakage: Emission control coefficients

et al. 2019

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“…Ideally, the tariff should reflect the emission intensity of the exporting firm, giving this firm incentive to reduce emissions (see Böhringer et al, 2015). However, such a system may be difficult and costly to implement, and hence analysis of carbon tariffs usually assume that the tariff is determined based on some average emission intensity.…”

Section: Equivalence Between Obr and Consumption Tax And Border Carbmentioning

confidence: 99%

“…For instance, with 100% rebating, i.e., all emission payments from the EITE-industry are rebated back to the industry in proportion to firms' output, the equivalence requires that the carbon tariff is based on domestic emission intensities, and that there is 100% export rebating. Böhringer et al (2012bBöhringer et al ( , 2015 examine different tariff regimes, concluding that differentiated tariffs are better than non-differentiated tariffs. However, differentiated tariffs require more administrative efforts, and are more likely to conflict with GATT rules (see Ismer andNeuhoff, 2007, andQuirion, 2011b).…”

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confidence: 99%

Mitigating Carbon Leakage: Combining Output-Based Rebating with a Consumption Tax

2015

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Unilateral climate policy induces carbon leakage through the relocation of emission-intensive and trade-exposed industries to regions with no or more lenient emission regulation. Both analytical and numerical studies suggest that emission pricing combined with border carbon adjustments may be a second-best instrument, and more cost-effective than output-based rebating, in which case domestic output is indirectly subsidized. No countries have so far imposed border carbon adjustments, while variants of output-based rebating have been implemented. In this paper we demonstrate that it is welfare improving for a region who has already implemented emission pricing along with output-based rebating for emission-intensive and trade-exposed goods to also introduce a consumption tax on these goods. Moreover, we show that combining output-based rebating with a consumption tax can be equivalent with border carbon adjustments. JEL-Code: D610, H200, Q540. Terms of use: Documents in

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“…These ex ante analyses were adopted by CGE models or IAM (Antimiani et al, 2016;. Researchers argued that the EU ETS leads to carbon leakage, shifting carbon emissions from regions with strong environmental constraints to those with weak environmental constraints (Paroussos et al, 2015;Böhringer et al, 2017). Similarly, some scholars have demonstrated that carbon leakage is inevitable in China's ETS using CGE model (Tan et al, 2018;Wang et al, 2018), but the simulation results of the ex ante analysis depend heavily on the model setup and the assumptions of the model .…”

Section: Introductionmentioning

confidence: 99%

Carbon Emission Trading Scheme, Carbon Emissions Reduction and Spatial Spillover Effects: Quasi-Experimental Evidence From China

Yang

Yuan

Zhang

2022

Front. Environ. Sci.

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The carbon emission trading scheme (ETS) is an essential policy tool for accomplishing Chinese carbon targets. Based on the Chinese provincial panel data from 2003 to 2019, an empirical study is conducted to measure the effects of carbon emission reduction and spatial spillover effect by adopting the difference-in-differences (DID) model and spatial difference-in-differences (SDID) model. The research findings show that: 1) The ETS effectively reduced the total carbon emissions as well as emissions from coal consumption; 2) such effects come mainly from the reduction of coal consumption and the optimization of energy structure, rather than from technological innovation and optimization of industrial structure in the pilot regions; and 3) the ETS pilot regions have a positive spatial spillover effect on non-pilot regions, indicating the acceleration effect for carbon emission reduction. Geographic proximity makes the spillover effect decrease due to carbon leakage.

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Targeted carbon tariffs: Export response, leakage and welfare

Cited by 36 publications

References 20 publications

A dynamic and continuous allowances allocation methodology for the prevention of carbon leakage: Emission control coefficients

A dynamic and continuous allowances allocation methodology for the prevention of carbon leakage: Emission control coefficients

Mitigating Carbon Leakage: Combining Output-Based Rebating with a Consumption Tax

Carbon Emission Trading Scheme, Carbon Emissions Reduction and Spatial Spillover Effects: Quasi-Experimental Evidence From China

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