<Para ID="Par1">We investigate political economy determinants of energy tax differentiation across industries. Based on a theoretical common agency model, we show that differences in the ease of energy demand reductions across industries explain the pattern of tax differentiation: if the government is...</para>

Carbon-based import tariffs are proposed as a policy measure to reduce carbon leakage and increase the global cost-effectiveness of unilateral CO2 emission pricing. We investigate the case for carbon tariffs. For our assessment, we combine multi-region input–output and computable general...

In its fight against climate change the EU is committed to reducing its overall greenhouse gas emissions to at least 20% below 1990 levels by 2020. To meet this commitment, the EU builds on segmented market regulation with an EU-wide cap-and-trade system for emissions from energy-intensive...

Political feasibility of emission trading systems may crucially depend on the free initial allocation of emission allowances to energy-intensive industries in order to ameliorate adverse production and employment effects. We investigate the potential trade-off between such compensation and...

In 2005, an EU-wide emissions trading scheme covering major CO2 producing sites shall come into power. The key objective of the trading scheme is to promote cost-efficiency of carbon reduction within the EU. We identify policy-relevant tradeoffs between overall efficiency, compensation and...

We motivate the formulation of market equilibria as a mixed complementarity problem (MCP) in order to bridge the gap between bottom-up energy system models and top-down general equilibrium models for energy policy analysis. Our objective is primarily pedagogic. We first lay out that the MCP...

In this paper we investigate how restrictions for emission trading to the energy-intensive power sector will affect the magnitude and distribution of abatement costs across EU countries vis-?-vis a comprehensive EU emission trading regime. We find that emission trading between European power...

We investigate how the U.S. withdrawal and the amendments of the Bonn climate policy conference in 2001 will change the economic and environmental impacts of the Kyoto Protocol in its original form. Based on simulations with a large-scale computable general equilibrium model, we find that U.S....

This paper investigates the economic impacts of two policy proposals: "Strom ohne Atom" (SOA) and "Moratorium Plus" (MOP), both of which contain a premature phase-out of nuclear power in Switzerland. While MOP restricts business-as-usual operation time of existing nuclear power plants to 40...