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Die Dis cus si on Pape rs die nen einer mög lichst schnel len Ver brei tung von neue ren For schungs arbei ten des ZEW. Die Bei trä ge lie gen in allei ni ger Ver ant wor tung der Auto ren und stel len nicht not wen di ger wei se die Mei nung des ZEW dar.Dis cus si on Papers are inten ded to make results of ZEW research prompt ly avai la ble to other eco no mists in order to encou ra ge dis cus si on and sug gesti ons for revi si ons. The aut hors are sole ly respon si ble for the con tents which do not neces sa ri ly repre sent the opi ni on of the ZEW.Download this ZEW Discussion Paper from our ftp server:http://ftp.zew.de/pub/zew-docs/dp/dp12007.pdf i EXECUTIVE SUMMARY Many of today's challenges require regulative interventions by policymakers. From an economic perspective, effectiveness, cost-efficiency and distribution issues are crucial for any form of future regulation. Ultimately, this results in the need for capable and above all reliable instruments to assess environmentally motivated regulations ex ante, for example Computable General Equilibrium (CGE) models. Elasticities are key parameters for such analyses. But despite the central role of elasticities, the experience regarding of elasticities is rather unsatisfying and there exist only few estimates of the required elasticities. As a consequence, modellers frequently feel impelled to employ in their models elasticities from various originally unrelated sources or to use elasticities derived from different conceptual frameworks, thereby exposing themselves to criticism with respect to the usage of potentially inconsistent parameters estimates. In this paper we seek to contribute to the solution of this problem and aim at overcoming the lack of adequate estimates. To this end, we consistently estimate substitution elasticities for CES production functions on the basis of different nonlinear least squares estimation procedures. Thereby, we focus on the well-established nested CES KLEM production structure. Thus on three level production functions, in which capital and labour are combined in the bottom nest, energy is added in the middle nest and finally intermediates enter the production in the top nest. In the process we take advantage of the World Input-Output Database (WIOD). The new WIOD database allows for the first time to use one consistent dataset for the estimation process and gives us the opportunity to derive elasticities from the same data which researchers can also use to calibrate their simulations. Our results show that compared to standard linear estimations using Kmenta approximations, non-linear estimation techniques perform significantly better in this context. Moreover, no significant change in input substitutability takes place during the time period we consider. Hence for most sectors we do not observe technological change through this channel. Although technological progress in the form of changing substitution elasticities may potentially be an issue when studying longer time periods. On the basis of our estimations, we demonst...

The pollution/energy leakage literature raises the concern that policies implemented in one country, such as a carbon tax or tight energy restrictions, might simply result in the reallocation of energy use to other countries. This paper addresses these concerns in the context of policies to increase energy efficiency, rather than direct action to reduce energy use. Using a global CGE simulation model, we extend the analyses of ‘economy-wide’ rebound from the national focus of previous studies to incorporate international spill-over effects from trade in goods and services. Our focus is to investigate whether these effects have the potential to increase or reduce the overall (global) rebound of local energy efficiency improvements. In the case we consider, increased energy efficiency in German production generates changes in comparative advantage that produce negative leakage effects, thereby actually rendering global rebound less than national rebound

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Die Dis cus si on Pape rs die nen einer mög lichst schnel len Ver brei tung von neue ren For schungs arbei ten des ZEW. Die Bei trä ge lie gen in allei ni ger Ver ant wor tung der Auto ren und stel len nicht not wen di ger wei se die Mei nung des ZEW dar.Dis cus si on Papers are inten ded to make results of ZEW research prompt ly avai la ble to other eco no mists in order to encou ra ge dis cus si on and sug gesti ons for revi si ons. The aut hors are sole ly respon si ble for the con tents which do not neces sa ri ly repre sent the opi ni on of the ZEW. Sailing into a dilemma AbstractOn the basis of a joint economic and legal analysis, we evaluate the effects of a "regional" (European) emission trading scheme aiming at reducing emissions of international shipping. The focus lies on the question which share of emissions from maritime transport activities to and from the EU can and should be included in such a system. Our findings suggest that the attempt to implement an EU maritime ETS runs into a dilemma. It is not possible to design a system that achieves emission reductions in a cost efficient manner and is compatible with international law.