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Concilier compétitivité industrielle et politique climatique. Faut-il distribuer les quotas de CO2 en fonction de la production ou bien les ajuster aux frontières ?

Author

Listed:
  • Damien Demailly
  • Philippe Quirion

Abstract

We compare four proposals for the European Union greenhouse gas Emission Trading Scheme (ets): auctioning of allowances, distribution of allowances proportional to current output, auctioning with border adjustment, and a hybrid distribution with auctioning for power production and output-based allocation in the other sectors. We develop a partial equilibrium model of the eu 27 featuring three sectors covered by the ets: cement, steel and electricity, as well as aluminium, indirectly impacted through the electricity price. The co 2 leakage rate ranges from 8% under auctioning to ? 2% with the border adjustment, and varies a lot across sectors. The aggregate economic cost is the highest with output-based allocation and the lowest with the border adjustment. Classification JEL : Q52, Q54, Q56

Suggested Citation

  • Damien Demailly & Philippe Quirion, 2008. "Concilier compétitivité industrielle et politique climatique. Faut-il distribuer les quotas de CO2 en fonction de la production ou bien les ajuster aux frontières ?," Revue économique, Presses de Sciences-Po, vol. 59(3), pages 497-504.
    • Handle: RePEc:cai:recosp:reco_593_0497
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    Citations

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    Cited by:

    1. repec:hal:spmain:info:hdl:2441/1gt6nhe6vs8pbb86oi81bt6838 is not listed on IDEAS
    2. Fischer, Carolyn & Fox, Alan K., 2009. "Comparing Policies to Combat Emissions Leakage: Border Tax Adjustments versus Rebates," RFF Working Paper Series dp-09-02, Resources for the Future.
    3. repec:hal:spmain:info:hdl:2441/3fenpfdsd19soqn2m1kt5noml0 is not listed on IDEAS
    4. repec:spo:wpmain:info:hdl:2441/1gt6nhe6vs8pbb86oi81bt6838 is not listed on IDEAS
    5. Monjon, Stéphanie & Quirion, Philippe, 2010. "How to design a border adjustment for the European Union Emissions Trading System?," Energy Policy, Elsevier, vol. 38(9), pages 5199-5207, September.
    6. Jean-Philippe Nicolaï & Jorge Zamorano, 2018. "Windfall Profits Under Pollution Permits and Output-Based Allocation," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 69(4), pages 661-691, April.
    7. Birgit Bednar-Friedl & Veronika Kulmer & Thomas Schinko, 2012. "The effectiveness of anti-leakage policies in the European Union: results for Austria," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 39(2), pages 233-260, May.
    8. Monjon, Stéphanie & Quirion, Philippe, 2011. "Addressing leakage in the EU ETS: Border adjustment or output-based allocation?," Ecological Economics, Elsevier, vol. 70(11), pages 1957-1971, September.
    9. Julien Bueb & Lilian Hanania & Alice Le Clézio, 2016. "Border adjustment mechanisms Elements for economic, legal, and political analysis," WIDER Working Paper Series 020, World Institute for Development Economic Research (UNU-WIDER).
    10. repec:spo:wpmain:info:hdl:2441/3fenpfdsd19soqn2m1kt5noml0 is not listed on IDEAS
    11. repec:dau:papers:123456789/7348 is not listed on IDEAS
    12. Julien Bueb & Lilian Richieri Hanania & Alice Leclezio, 2016. "Border adjustment mechanisms," Working Papers hal-03469958, HAL.
    13. Julien Bueb & Lilian Richieri Hanania & Alice Le Clézio, 2016. "Border adjustment mechanisms: Elements for economic, legal, and political analysis," WIDER Working Paper Series wp-2016-20, World Institute for Development Economic Research (UNU-WIDER).
    14. Julien Bueb & Lilian Richieri Hanania & Alice Leclezio, 2017. "Border Adjustment Mechanisms," Post-Print hal-03394091, HAL.
    15. Santamaría, Alberto & Linares, Pedro & Pintos, Pablo, 2014. "The effects of carbon prices and anti-leakage policies on selected industrial sectors in Spain – Cement, steel and oil refining," Energy Policy, Elsevier, vol. 65(C), pages 708-717.
    16. Julien Bueb & Lilian Richieri Hanania & Alice Leclezio, 2016. "Border adjustment mechanisms," SciencePo Working papers Main hal-03469958, HAL.

    More about this item

    JEL classification:

    • Q52 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Pollution Control Adoption and Costs; Distributional Effects; Employment Effects
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth

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