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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...
Persistent link: https://www.econbiz.de/10011300313
Several EU member states are exploring options for setting minimum domestic carbon prices within the EU Emission Trading System (ETS). First, a "TAX" policy would introduce a carbon tax equal to the difference between the prevailing ETS price and the targeted minimum price. Second, a national...
Persistent link: https://www.econbiz.de/10012300226
green paradox for a general model and then apply it to the details of EU ETS. In 2018, new rules for a Market Stability …
Persistent link: https://www.econbiz.de/10012105543
depending on the market outcome. Perino (2018) showed that additional abatement effort can reduce cumulative emissions if it …
Persistent link: https://www.econbiz.de/10012022186
Policy makers in the EU and elsewhere are concerned that unilateral carbon pricing induces carbon leakage through relocation of emission-intensive and trade-exposed industries to other regions. A common measure to mitigate such leakage is to combine an emission trading system (ETS) with...
Persistent link: https://www.econbiz.de/10012118539
future allowance sales (the market stability reserve); although prices are beginning to recover, it is far from clear whether … market-based approaches to addressing climate change. The solution in other carbon markets has been the introduction of a … expressed concern that a minimum auction price would interfere with economic operations in the market or would be tantamount to …
Persistent link: https://www.econbiz.de/10012119540
Countries with ambitious climate targets are concerned about carbon leakage to countries with more lenient or no carbon pricing. A common policy measure against leakage is output-based allocation of emissions allowances, whose effectiveness could be further enhanced by consumption taxes levied...
Persistent link: https://www.econbiz.de/10014528226