Border adjustment for European emissions trading: Competitiveness and carbon leakage

Kuik, Onno; Hofkes, M.W.

doi:10.1016/j.enpol.2009.11.048

Cited by 204 publications

(93 citation statements)

References 15 publications

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“…However, while there is some convergence in how EU countries are responding to climate risks, and to the energy challenge in particular [19][20][21][22][23][24], states' environmental and energy policies combined with their individual market characteristics are continuing to shape the particularities of how policy innovation, adoption, and implementation within countries is taking place [25][26][27][28][29]. In response to this heterogeneity, there is a considerable body of recent research that is devoted to understanding this socio-technical transition phenomenon, and especially from a multi-level perspective (MLP) [30][31][32][33][34][35][36][37].…”

Section: Introductionmentioning

confidence: 99%

The Spanish Turn against Renewable Energy Development

2018

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Abstract:In this study, we focus on the case of Spanish energy policy and its implications for sustainable energy development. In recent years, Spanish legislation has changed dramatically in its approach to sustainable energy sources. This change is despite EU and international efforts to increase energy efficiency, and to accelerate the transition to renewable energy sources (RES) in order to reduce greenhouse gas emissions. Based on the socio-technical transitions literature, this paper assesses the role of the new legislation in this altered scenario, and analyzes the evolution of energy production in Spain in the EU context. The results are triangulated with two expert assessments. We find that Spanish energy policy is responding to the energy lobby's demands for protection for both their investment and their dominant position. This has resulted in a reduction in the number of investors combined with a lack of trust in both local and foreign investors in the sustainable energy sector, affecting also social innovations in energy transitions. We conclude that Spain is a particular case of concomitance between the energy sector and political power which raises concern about the viability of a higher level of energy sovereignty and the achievement of international commitments regarding climate change.

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Section: Introductionmentioning

confidence: 99%

The Spanish Turn against Renewable Energy Development

2018

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“…Dieses Phänomen wird als Carbon Leakage (also Verlagerung von CO 2 -Emissionen) bezeichnet. Während Carbon Leakage für die erste und zweite Phase des EU Emissionshandels mit einer Größenord-nung von 10 bis 30 % nur eine untergeordnete Rolle spielte (Babiker, 2005;Babiker und Rutherford, 2005;Barker et al, 2007;Kuik and Hofkes, 2010;Paltsev, 2001), kann Carbon Leakage bei strengeren Zielen, einer Erstversteigerung der Emissionszertifikate und rasch wachsenden Schwellenländern in Zukunft zu einem größeren Problem werden (Bednar-Friedl et al, 2012). Rund 50 % des Carbon Leakage-Effekts entsteht über Feedbacks (Rückkoppelungen) von internationalen Rohstoffmärkten, da eine reduzierte Nachfrage nach fossilen Energieträgern in den regulierten Regionen zu einer Preisreduktion und somit zu einer Zunahme der Rohstoffnachfrage in nichtregulierten Ländern führt (Böhringer et al, 2010;Fischer und Fox, 2007).…”

Section: Wirtschaftliche Barrierenunclassified

Band 3: Klimawandel in Österreich: Vermeidung und Anpassung. Kapitel 1: Emissionsminderung und Anpassung an den Klimawandel

Bednar–Friedl¹,

Radunsky²,

Balas³

et al. 2014

Österreichischer Sachstandsbericht Klimawandel 2014

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“…This problem concerns not only environmental taxes but many other environmental measures. The phenomenon is well known with regard to carbon leakage (Kuik and Hofkes 2010;Monjon and Quirion 2011). It also affects many other releases and impact categories, as the life cycle assessment experts are well aware of.…”

Section: Introductionmentioning

confidence: 99%

From value-added tax to a damage and value-added tax partially based on life cycle assessment: principles and feasibility

Timmermans

Achten

2018

Int J Life Cycle Assess

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Purpose The purpose of this article is to examine the arguments in favor of a shift from value-added tax (VAT) or sales tax to a damage and value-added tax (DaVAT) partially based on the life cycle assessment (LCA) of goods and services. With this shift, goods and services that seriously harm the environment and human health will be priced up, those that impact them less will be priced down. The paper recalls the proposal made by De Camillis and Goralczyk (Int J Life Cycle Assess 18: [263][264][265][266][267][268][269][270][271][272] 2013) to differentiate the VAT rate associated with products according to their environmental impacts over their life cycle. The paper suggests a new way to convert VAT into DaVAT, examines the operating principles of such a system, and considers its practical feasibility. The new policy tool based on LCA presented is intended to be applied to every country wishing to reform its consumption tax system in order to strive for a more sustainable future. Some aspects specific to countries having the same currency, notably the Euro zone, are also discussed. Methods The proposal of De Camillis and Goralczyk is discussed from the perspective of both environmental performance and compliance with LCA standards. To overcome the identified difficulties, a new way of adapting VAT (or consumption taxes in general) according to LCA is suggested. The proposal relies on three essential points: (i) apply VAT (or consumption taxes in general) to all goods and services and reduce its multiple rates to one single low rate (e.g., 3%) called uniform VAT (UVAT); (ii) add to UVAT a per-unit tax called global damage tax (GDT) calculated on the basis of environmental impacts assessed by means of specific or generic LCAs. In the case of potentially high-polluting products or industries, a specific LCA will be automatically imposed. The obligation to assess high-polluting activities already exists in many countries with, e.g., environmental impact studies, but the impacts are not necessarily evaluated by LCA; (iii) in order to reflect environmental, social, or ethical concerns specific to a country, another damage tax termed specific damage tax (SDT) is proposed that extends beyond LCA. DaVAT is the sum of UVAT, GDT, and SDT. DaVAT is conceived not as an additional burden but rather as a shift of taxation, as the rate of the old consumption taxes can decrease proportionally to the increase of GDT. DaVAT is also designed in such a way that the erosion of tax revenues, when pollutant would decline, is offset by the extension of the tax to all goods and services and by the possibility to gradually re-increase the UVAT rate when the number of highly polluting products decreases. Results and discussion The proposal is examined first from a theoretical point of view by considering which principles should be used to comply with LCA standards and general requirements of (environmental) tax policies. Four general principles emerge: consistency in the choice of the functional unit and in the characterization, n...

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Border adjustment for European emissions trading: Competitiveness and carbon leakage

Cited by 204 publications

References 15 publications

The Spanish Turn against Renewable Energy Development

The Spanish Turn against Renewable Energy Development

Band 3: Klimawandel in Österreich: Vermeidung und Anpassung. Kapitel 1: Emissionsminderung und Anpassung an den Klimawandel

From value-added tax to a damage and value-added tax partially based on life cycle assessment: principles and feasibility

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