This paper examines the distributional impacts from (i) harmonizing prices for carbon dioxide emissions across sectors and EU countries and (ii) using alternative rules for carbon revenue distribution. We develop a numerical multi-country multi-sector general equilibrium model of the EU-27...

This paper examines the distributional impacts from (i) harmonizing prices for carbon dioxide emissions across sectors and EU countries and (ii) using alternative rules for carbon revenue distribution. We develop a numerical multi-country multi-sector general equilibrium model of the EU-27...

This policy brief explores the potential scope and optimal design of national climate policies in the European climate policy context. It argues that the recent German proposal of a climate levy for electricity generators (BMWi 2015) has the potential to reconcile EU and national policies....

Since January 2005, European energy-intensive sectors are double regulated. Their energy consumption is covered both by the Energy Taxation Directive and the European Union Emission Trading Scheme Directive. To address the risk of carbon leakage and competitiveness loss following from EU climate...

Carbon pricing is a key instrument for achieving Europe's ambitious climate targets. It is therefore not surprising that reform of the EU carbon market is at the heart of the measures proposed by the European Commission (EC). One important policy innovation would be the introduction of a second...