Climate policy and the problem of competitiveness : border tax adjustments or integrated emission trading?


Alexeeva-Talebi, Victoria ; Löschel, Andreas ; Mennel, Tim


[img]
Preview
PDF
dp08061.pdf - Published

Download (339kB)

URL: http://ub-madoc.bib.uni-mannheim.de/2093
URN: urn:nbn:de:bsz:180-madoc-20931
Document Type: Working paper
Year of publication: 2008
Publication language: English
Institution: Sonstige Einrichtungen > ZEW - Leibniz-Zentrum für Europäische Wirtschaftsforschung
MADOC publication series: Veröffentlichungen des ZEW (Leibniz-Zentrum für Europäische Wirtschaftsforschung) > ZEW Discussion Papers
Subject: 330 Economics
Classification: JEL: F18 H23 Q48 D58 ,
Subject headings (SWD): Klimaschutz , Internationaler Wettbewerb , Zoll , Umweltzertifikathandel , Zwei-Länder-Modell , Europäische Union
Keywords (English): Border Tax Adjustments , Climate Policy , Competitiveness , Emission Trading
Abstract: In the absence of an international agreement on climate policy, unilateral carbon abatement creates two problems: It tends to have a detrimental effect on domestic competitiveness, and it leads to an increase in carbon emissions abroad (leakage). This paper analyses two policies that have recently been proposed to mitigate these problems: Border tax adjustments (BTA) and integrated emission trading (IET). The former policy levies a quantity-based, the latter an emission based duty on imports from non-abating countries. In a stylised two-country model we demonstrate that the policies address both problems. However, BTA protects domestic competitiveness more effectively, while IET achieves a greater reduction in foreign emissions. A computational general equilibrium analysis of the unilateral abatement policy adopted by the European Union confirms our theoretical insights for the sectors covered by the offsetting measures. However, the implications for the competitiveness of noncovered sectors are negative. These two effects constitute the central trade-off in the implementation of both policies.
Additional information:

Das Dokument wird vom Publikationsserver der Universitätsbibliothek Mannheim bereitgestellt.




+ Citation Example and Export

Alexeeva-Talebi, Victoria ; Löschel, Andreas ; Mennel, Tim (2008) Climate policy and the problem of competitiveness : border tax adjustments or integrated emission trading? Open Access [Working paper]
[img]
Preview


+ Search Authors in

+ Download Statistics

Downloads per month over past year

View more statistics



You have found an error? Please let us know about your desired correction here: E-Mail


Actions (login required)

Show item Show item