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The effects of carbon prices and anti-leakage policies on selected industrial sectors in Spain – Cement, steel and oil refining

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  • Santamaría, Alberto
  • Linares, Pedro
  • Pintos, Pablo

Abstract

This paper assesses the impacts on the cement, steel and oil refining sectors in Spain of the carbon prices derived from the European Emissions Trading Scheme (EU ETS), and the potential effect on these sectors of the European Union anti-leakage policy measures. The assessment is carried out by means of three engineering models developed for this purpose. Our results show a high exposure to leakage of cement in coastal regions; a smaller risk in the steel sector, and non-negligible risk of leakage for the oil refining sector when carbon allowance prices reach high levels. We also find that the risk of leakage could be better handled with other anti-leakage policies than those currently in place in the EU.

Suggested Citation

  • 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.
    • Handle: RePEc:eee:enepol:v:65:y:2014:i:c:p:708-717
    DOI: 10.1016/j.enpol.2013.10.031
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    References listed on IDEAS

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    Cited by:

    1. Wang, Maria & Kuusi, Tero, 2024. "Trade flows, carbon leakage, and the EU Emissions Trading System," Energy Economics, Elsevier, vol. 134(C).
    2. Pablo Pintos & Pedro Linares, 2016. "Assessing the EU ETS with an Integrated Model," Working Papers 01-2016, Economics for Energy.
    3. Fournier Gabela, Julio G. & Freund, Florian, 2022. "Potential carbon leakage risk: A cross-sector cross-country assessment in the OECD area," Conference papers 333468, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    4. Elisabetta Allevi & Giorgia Oggioni & Rossana Riccardi & Marco Rocco, 2013. "A spatial competitive analysis: the carbon leakage effect on the cement industry under the European Emissions Trading Scheme," Temi di discussione (Economic working papers) 899, Bank of Italy, Economic Research and International Relations Area.
    5. Kuusi, Tero & Wang, Maria, 2022. "Trade Flows, Carbon Leakage, and the EU Emissions Trading System," ETLA Working Papers 94, The Research Institute of the Finnish Economy.
    6. Sun, YongPing & Xue, JinJun & Shi, XunPeng & Wang, KeYing & Qi, ShaoZhou & Wang, Lei & Wang, Cheng, 2019. "A dynamic and continuous allowances allocation methodology for the prevention of carbon leakage: Emission control coefficients," Applied Energy, Elsevier, vol. 236(C), pages 220-230.
    7. Wu, Libo & Zhou, Ying & Qian, Haoqi, 2022. "Global actions under the Paris agreement: Tracing the carbon leakage flow and pursuing countermeasures," Energy Economics, Elsevier, vol. 106(C).

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