Arbeitspapier

Mitigating carbon leakage: Combining output-based rebating with a consumption tax

Unilateral climate policy induces carbon leakage through the relocation of emission-intensive and trade-exposed industries to regions with no or more lenient emission regulation. Both analytical and numerical studies suggest that emission pricing combined with border carbon adjustments may be a second-best instrument, and more cost-effective than output-based rebating, in which case domestic output is indirectly subsidized. No countries have so far imposed border carbon adjustments, while variants of output-based rebating have been implemented. In this paper we demonstrate that it is welfare improving for a region who has already implemented emission pricing along with output-based rebating for emission-intensive and trade-exposed goods to also introduce a consumption tax on these goods. Moreover, we show that combining output-based rebating with a consumption tax can be equivalent with border carbon adjustments.

Sprache
Englisch

Erschienen in
Series: Oldenburg Discussion Papers in Economics ; No. V-380-15

Klassifikation
Wirtschaft
Allocative Efficiency; Cost-Benefit Analysis
Climate; Natural Disasters and Their Management; Global Warming
Thema
carbon leakage
output-based rebating
border carbon adjustments
consumption tax

Ereignis
Geistige Schöpfung
(wer)
Böhringer, Christoph
Rosendahl, Knut Einar
Storrøsten, Halvor Briseid
Ereignis
Veröffentlichung
(wer)
University of Oldenburg, Department of Economics
(wo)
Oldenburg
(wann)
2015

Handle
Letzte Aktualisierung
10.03.2025, 11:41 MEZ

Datenpartner

Dieses Objekt wird bereitgestellt von:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.

Objekttyp

  • Arbeitspapier

Beteiligte

  • Böhringer, Christoph
  • Rosendahl, Knut Einar
  • Storrøsten, Halvor Briseid
  • University of Oldenburg, Department of Economics

Entstanden

  • 2015

Ähnliche Objekte (12)