Arbeitspapier
Intensity-based rebating of emission pricing revenues
Carbon pricing policies worldwide are increasingly coupled with direct or indirect subsidies where emissions pricing revenues are rebated to the regulated entities. This paper analyzes the incentives created by two novel forms of rebating that reward additional emission intensity reductions: one given in proportion to output (intensity-based output rebating) and another that rebates a share of emission payments (intensity-based emission rebating). These forms are contrasted with outputbased rebating, abatement-based rebating, and lump sum rebating. Given the same emission price, intensity-based output rebating incentivizes the most intensity reductions, while abatement-based rebating incentivizes the most output reductions, and output-based rebating puts the least pressure on output (and emissions); intensitybased emissions rebating lies in between these, by implicitly subsidizing emissions while incentivizing intensity reductions. The paper supplements partial equilibrium theoretical analysis with numerical simulations to assess the performance of different mechanisms in a multisector general equilibrium model that accounts for economywide market interactions.
- Language
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Englisch
- Bibliographic citation
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Series: Oldenburg Discussion Papers in Economics ; No. V-439-22
- Classification
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Wirtschaft
Environmental Economics: General
Climate; Natural Disasters and Their Management; Global Warming
Environmental Economics: Government Policy
Computable General Equilibrium Models
- Subject
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climate change
policy
carbon pricing
- Event
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Geistige Schöpfung
- (who)
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Böhringer, Christoph
Fischer, Carolyn
Rivers, Nicholas
- Event
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Veröffentlichung
- (who)
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University of Oldenburg, Department of Economics
- (where)
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Oldenburg
- (when)
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2022
- Handle
- Last update
-
10.03.2025, 11:42 AM CET
Data provider
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Arbeitspapier
Associated
- Böhringer, Christoph
- Fischer, Carolyn
- Rivers, Nicholas
- University of Oldenburg, Department of Economics
Time of origin
- 2022
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On the Design of Optimal Grandfathering Schemes for Emission Allowances
Strategic Partitioning of Emissions Allowances. Under the EU Emission Trading Scheme
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Environmental tax differentiation between industries and households - implications for efficiency and employment: a multi-sector intertemporal CGE analysis for Germany
Intensity-based rebating of emissions pricing revenues
Unilateral climate policy and competitiveness: The implications of differential emission pricing
Industry-level emission trading between power producers in the EU
Optimal Emission Pricing in the Presence of International Spillovers: Decomposing Leakage and Terms-of-Trade Motives
On the Design of Optimal Grandfathering Schemes for Emission Allowances
Strategic Partitioning of Emissions Allowances. Under the EU Emission Trading Scheme
Contraction of global carbon emissions: how acceptable are alternative emission entitlement schemes
Economic Implications of Alternative Allocation Schemes for Emission Allowances: A Theoretical and Applied Analysis
Cooling down hot air: a global CGE analysis of post-Kyoto carbon abatement strategies
The Kyoto Protocol: A Review and Perspectives
Die Kosten des Klimaschutzes: Eine Interpretationshilfe für die mit quantitativen Wirtschaftsmodellen ermittelten Kostenschätzungen