GTAP Resources: Resource Display
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"Unilateral climate policy and competitiveness: Differential emission pricing from a sectoral, regional and global perspective" by Böhringer, Christoph and Victoria Alexeeva-Talebi Abstract Unilateral emission reduction commitments raise concerns on international competitiveness and emission leakage that result in preferential regulatory treatment of domestic energy-intensive and trade-exposed industries. Our analysis illustrates the potential pitfalls of climate policy design which narrowly focuses on competitiveness concerns about energy-intensive and trade-exposed branches. The sector-specific gains of preferential regulation in favour of these branches must be traded off against the additional burden imposed on other industries and economy-wide excess costs to meet the unilateral emission reduction target. From the perspective of global cost-effectiveness, however, preferential emission pricing for domestic energy-intensive and trade-exposed sectors can reduce leakage and thereby lower overall cost of cutting global emissions as compared to uniform emission pricing. JEL Classification: D58, H21, H22, Q48 Keywords: unilateral climate policy design, leakage, competitiveness |
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- Climate change policy |
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Public Access  2011 Conference Paper (361.2 KB) Replicated: 0 time(s)Restricted Access No documents have been attached. Special Instructions No instructions have been specified. |
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Last Modified: 9/15/2023 2:05:45 PM
