Land competitiveness and leakage concerns and border carbon adjustments

Arbeitspapier

This paper provides a review of the literature on competitiveness and leakage concerns associated with differentiated climate abatement commitments among countries. The literature reviewed is not exhausted, but it is sufficient to provide a balanced view of both academics and policy circles. Section 2 discusses how to identify the sectors at a risk of carbon leakage. Section 3 examines ex ante estimates of potential carbon leakage rates, and explains why they differ from ex post results of environmental tax reforms and greenhouse gas emissions trading schemes that have been implemented in the European Union. Section 4 discusses broad policy options to address competitiveness and leakage concerns, and compares which anti-leakage policy, border adjustments or output-based allocation, is more effective to limiting carbon leakages or mitigating production loss in the sectors affected. Given that border carbon adjustment measures are incorporated in the U.S. proposed congressional climate bills to level the carbon playing field and could have potential conflicts with World Trade Organization (WTO) provisions and practical difficulties associated with their implementation, Section 5 discuses in great detail the WTO consistency, the effectiveness and methodological challenges of border carbon adjustment measures. The paper ends with some concluding remarks.

Angaben zum Objekt

• Sprache: Englisch

Verweise und Beziehungen

• Erschienen in: Series: Nota di Lavoro ; No. 80.2012

Klassifikation und Themen

• Klassifikation: Wirtschaft ; Trade and Environment ; Macroeconomic Aspects of International Trade and Finance: Forecasting and Simulation: Models and Applications ; Economic Development: Agriculture; Natural Resources; Energy; Environment; Other Primary Products ; Development Planning and Policy: Trade Policy; Factor Movement; Foreign Exchange Policy ; Innovation and Invention: Processes and Incentives ; Environment and Growth ; Nonrenewable Resources and Conservation: Issues in International Trade ; Alternative Energy Sources ; Energy and the Macroeconomy ; Energy: Government Policy ; Climate; Natural Disasters and Their Management; Global Warming ; Environmental Economics: Technological Innovation ; Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth ; Environmental Economics: Government Policy ; General Equilibrium and Welfare Economic Analysis of Regional Economies ; General Regional Economics: Econometric and Input-Output Models; Other Models
• Thema: Emission Trading ; Competitiveness ; Carbon Leakage ; Emissions Allowance Requirements ; Carbon Tariffs ; Border Carbon Adjustments ; Grandfathering ; Output-Based Allocation ; World Trade Organization

Beteiligte, Orts- und Zeitangaben

• Ereignis: Geistige Schöpfung
• (wer): Zhang, ZhongXiang
• Ereignis: Veröffentlichung
• (wer): Fondazione Eni Enrico Mattei (FEEM)
• (wo): Milano
• (wann): 2012

Weitere Informationen

• Handle: http://hdl.handle.net/10419/72946
• Letzte Aktualisierung: 10.03.2025, 11:44 MEZ