Arbeitspapier
Optimal Emission Pricing in the Presence of International Spillovers: Decomposing Leakage and Terms-of-Trade Motives
Carbon leakage provides an efficiency argument for unilateral climate policy to differentiate emission prices in favor of emission-intensive and trade-exposed sectors. At the same time, differential emission pricing can be (mis-)used as a beggar-thy-neighbor policy to exploit terms of trade. Using an optimal tax framework, we propose a method to decompose the leakage motive and the terms-of-trade motive for emission price differentiation. We employ our method for a quantitative impact assessment of unilateral climate policy based on empirical data. We find that the leakage motive yields only small efficiency gains compared to uniform emission pricing. Likewise, the terms-of-trade motive has rather limited potential for strategic burden shifting. We conclude that the simple first-best rule of uniform emission pricing remains a practical guideline for unilateral climate policy design.
- Sprache
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Englisch
- Erschienen in
-
Series: Oldenburg Discussion Papers in Economics ; No. V-347-12
- Klassifikation
-
Wirtschaft
Taxation and Subsidies: Efficiency; Optimal Taxation
Energy and the Macroeconomy
General Equilibrium and Welfare Economic Analysis of Regional Economies
Computable and Other Applied General Equilibrium Models
- Thema
-
optimal taxation
emission leakage
terms of trade
Umweltschutz
Internationale Umweltpolitik
Umweltbelastung
Treibhausgas-Emissionen
Luftverschmutzung
Emissionshandel
Preisdifferenzierung
Terms of Trade
USA
EU-Staaten
- Ereignis
-
Geistige Schöpfung
- (wer)
-
Böhringer, Christoph
Lange, Andreas
Rutherford, Thomas F.
- Ereignis
-
Veröffentlichung
- (wer)
-
University of Oldenburg, Department of Economics
- (wo)
-
Oldenburg
- (wann)
-
2012
- Handle
- Letzte Aktualisierung
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10.03.2025, 11:44 MEZ
Datenpartner
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Objekttyp
- Arbeitspapier
Beteiligte
- Böhringer, Christoph
- Lange, Andreas
- Rutherford, Thomas F.
- University of Oldenburg, Department of Economics
Entstanden
- 2012