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GTAP Resources: Resource Display

GTAP Resource #3066

"Border tax adjustments and the EU-ETS - A quantitative assessment"
by Manders, Ton and Paul J. J. Veenendaal


Abstract
If the EU stands alone in adopting climate policy and imposes a strict emissions ceiling, competitiveness of EU energy-intensive sectors will be affected negatively. Relocation of EU energy-intensive firms to countries with a lax regime also leads to carbon leakage. However,
when use is made of the opportunities of the Clean Development Mechanism these impacts are very modest. Border tax adjustments (BTAs) to ‘level the playing field’ between domestic and foreign producers may be considered to address the concerns about both competitiveness and carbon leakage. It is far from clear whether these measures are WTO-proof. Simulations show that both an import levy and an export refund restore competitiveness to a certain extent. BTAs may lower the costs for energy-intensive sectors, but induce higher costs for other sectors. This paper uses a general equilibrium model to quantify and assess the implications of a number of
policy scenarios.


Resource Details (Export Citation) GTAP Keywords
Category: 2009 Conference Paper
Status: Published
By/In: CPB Document, no 171; Presented at the 12th Annual Conference on Global Economic Analysis, Santiago, Chile
Date: 2008
Version:
Created: Manders, T. (4/15/2009)
Updated: Manders, T. (4/15/2009)
Visits: 3,301
No keywords have been specified.


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