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
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Englisch
- Erschienen in
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Series: Oldenburg Discussion Papers in Economics ; No. V-380-15
- Klassifikation
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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)
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University of Oldenburg, Department of Economics
- (wo)
-
Oldenburg
- (wann)
-
2015
- Handle
- Letzte Aktualisierung
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10.03.2025, 11:41 MEZ
Datenpartner
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Objekttyp
- Arbeitspapier
Beteiligte
- Böhringer, Christoph
- Rosendahl, Knut Einar
- Storrøsten, Halvor Briseid
- University of Oldenburg, Department of Economics
Entstanden
- 2015