Leakage from Climate Policies and Border Tax Adjustment: Lessons from a Geographic Model of the Cement Industry
| Autor: | Quirion, Philippe, Demailly, Damien |
|---|---|
| Přispěvatelé: | centre international de recherche sur l'environnement et le développement (CIRED), Centre National de la Recherche Scientifique (CNRS)-École des Ponts ParisTech (ENPC)-École des hautes études en sciences sociales (EHESS)-AgroParisTech-Centre de Coopération Internationale en Recherche Agronomique pour le Développement (Cirad), Roger Guesnerie and Henry Tulkens, Sadoun, Michele, Centre international de recherche sur l'environnement et le développement (CIRED), Centre National de la Recherche Scientifique (CNRS)-École des Ponts ParisTech (ENPC)-École des hautes études en sciences sociales (EHESS)-Centre de Coopération Internationale en Recherche Agronomique pour le Développement (Cirad)-Ecole Nationale du Génie Rural, des Eaux et des Forêts (ENGREF) |
| Jazyk: | angličtina |
| Rok vydání: | 2008 |
| Předmět: |
010504 meteorology & atmospheric sciences
spillover border-tax adjustment 05 social sciences Cement Kyoto Protocol [SHS.ECO]Humanities and Social Sciences/Economics and Finance 01 natural sciences leakag climate change mitigation 0502 economics and business [SDE]Environmental Sciences international trade 050207 economics [SHS.ECO] Humanities and Social Sciences/Economics and Finance transportation cost 0105 earth and related environmental sciences |
| Zdroj: | The Design of Climate Policy-CESifo Seminar Series Roger Guesnerie and Henry Tulkens. The Design of Climate Policy-CESifo Seminar Series, Boston: The MIT Press, pp.333-359, 2008 |
| Popis: | We present a spatial international trade model, GEO, which computes transportation costs bynot treating markets as dimensionless points and explicitly represents capacity shortages andinvestment decisions in new production capacities. We link it to CEMSIM, a partialequilibrium model of the world cement industry developed by the IPTS. We assume that theKyoto Protocol Annex B countries (except the USA and Australia), create a CO2 tax at 15euros per tonne. This policy entails significant emissions reductions (around 20%) in thesecountries. A significant leakage occurs, with an emissions increase in the rest of the world ofaround 20% of the emissions reduction in Annex B-USA&Australia. We thus run twoscenarios combining a CO2 tax with border-tax adjustments (BTA). With the more ambitiousBTA tested, not only is there no leakage, but emissions in the rest of the world decreaseslightly. However, compared to business-as-usual, non-Annex B price-competitiveness andproduction decrease a little and these countries loose some market shares, so they couldattack this system as distorting competition in favour of Annex B countries. A less ambitiousBTA is thus tested, which cannot be criticised on this ground and prevents almost all leakage.The only drawback of both BTA policies is that the cement price in Annex BUSA&Australia increases a little more than without BTA, further impacting the cementconsumers in these countries. |
| Databáze: | OpenAIRE |
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