The value-added of sectoral disaggregation: Implications on competitive consequences of climate change policies

Arbeitspapier

Global impact assessment of unilateral climate policies is commonly based on multi-sector, multi-region computable general equilibrium (CGE) models that are calibrated to consistent accounts of production, consumption, and bilateral trade flows. However, global economic databases such as GTAP treat energy-intensive and trade-exposed industries rather in aggregate, thereby missing potentially important details on the heterogeneity of these sectors. In this paper, we elaborate on the availability of data resources and methodological issues in disaggregating energy-intensive and tradeexposed sectors that receive larger attention in the public policy debate on unilateral emission regulation: non-ferrous metals, iron and steel and non-metallic minerals. Our sensitivity analysis revolves around three types of unobserved heterogeneity at the sub-sectoral level: trade elasticities, energy consumption and technology specifications. Drawing on the example of border tax adjustments, we find that for all given technology specifications and variation in energy shares, the biggest differences emerge from variations in Armington elasticities. Even moderate changes in Armington elasticities can alter the magnitude and the sign of the effects at the sectoral level. The implications of sub-sectoral disaggregation are not as pronounced for macroeconomic indicators and leakage as for sectoral indicators.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: ZEW Discussion Papers ; No. 12-069

Classification and Topics

• Classification: Wirtschaft ; Computable and Other Applied General Equilibrium Models ; Taxation and Subsidies: Efficiency; Optimal Taxation ; Taxation and Subsidies: Incidence ; Energy: Government Policy
• Subject: sectoral disaggregation ; emissions trading ; border adjustment ; competitiveness ; carbon leakage ; Klimaschutz ; Emissionshandel ; Branche ; Aggregation ; Energiekonsum ; Border Tax Adjustment ; Internationaler Wettbewerb ; Elastizität ; Allgemeines Gleichgewicht ; Theorie

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Alexeeva-Talebi, Victoria ; Böhringer, Christoph ; Löschel, Andreas ; Voigt, Sebastian
• Event: Veröffentlichung
• (who): Zentrum für Europäische Wirtschaftsforschung (ZEW)
• (where): Mannheim
• (when): 2012

Further information

• Handle: http://hdl.handle.net/10419/66781
• URN: urn:nbn:de:bsz:180-madoc-326210
• Last update: 10.03.2025, 11:42 AM CET