scholarly journals Carbon Leakage Revisited: Unilateral Climate Policy with Directed Technical Change

2006 ◽  
Author(s):  
Corrado Di Maria ◽  
Edwin van der Werf
Keyword(s):  
Climate Policy ◽  
Technical Change ◽  
Carbon Leakage ◽  
Directed Technical Change ◽  
Unilateral Climate Policy

scholarly journals Reducing the Decarbonisation Cost Burden for EU Energy-Intensive Industries

Energies ◽  
2021 ◽  
Vol 14 (1) ◽  
pp. 236
Author(s):  
Panagiotis Fragkos ◽  
Kostas Fragkiadakis ◽  
Leonidas Paroussos
Keyword(s):  
Climate Policy ◽  
Carbon Leakage ◽  
Carbon Intensity ◽  
Policy Debate ◽  
Climate Policies ◽  
Mitigation Effort ◽  
Energy Intensive Industries ◽  
The Eu ◽  
Energy Intensities ◽  
Unilateral Climate Policy

Carbon leakage features prominently in the climate policy debate in economies implementing climate policies, especially in the EU. The imposition of carbon pricing impacts negatively the competitiveness of energy-intensive industries, inducing their relocation to countries with weaker environmental regulation. Unilateral climate policy may complement domestic emissions pricing with border carbon adjustment to reduce leakage and protect the competitiveness of domestic manufacturing. Here, we use an enhanced version of GEM-E3-FIT model to assess the macro-economic impacts when the EU unilaterally implements the EU Green Deal goals, leading to a leakage of 25% over 2020–2050. The size and composition, in terms of GHG and energy intensities, of the countries undertaking emission reductions matter for carbon leakage, which is significantly reduced when China joins the mitigation effort, as a result of its large market size and the high carbon intensity of its production. Chemicals and metals face the stronger risks for relocation to non-abating countries. The Border Carbon Adjustment can largely reduce leakage and the negative activity impacts on energy-intensive and trade-exposed industries of regulating countries, by shifting the emission reduction to non-abating countries through implicit changes in product prices.

Directed technical change and differentiation of climate policy

2008 ◽  
Vol 30 (6) ◽  
pp. 2855-2878 ◽  
Author(s):  
Vincent M. Otto ◽  
Andreas Löschel ◽  
John Reilly
Keyword(s):  
Climate Policy ◽  
Technical Change ◽  
Directed Technical Change
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