The relevance of process emissions for carbon leakage: A comparison of unilateral climate policy options with and without border carbon adjustment

Bednar–Friedl, Birgit; Schinko, Thomas; Steininger, Karl W.

doi:10.1016/j.eneco.2012.08.038

Cited by 81 publications

(35 citation statements)

References 16 publications

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“…Eight studies find negative values of leakage ratio in case of BCAs, with three studies (Mathiesen and Maestad, 2004;McKibbin et al, 2008;Lanzi et al, 2012) finding values below -15%. Internal variations (within one study) of leakage ratio estimates range from almost null (Alexeeva-Talebi et al, 2012b) to relatively high (Mathiesen and Maestad, 2004;Bednar-Friedl et al, 2012;Ghosh et al, 2012) depending on the scenarios and models.…”

Section: First Sightmentioning

confidence: 99%

Would border carbon adjustments prevent carbon leakage and heavy industry competitiveness losses? Insights from a meta-analysis of recent economic studies

Branger

Quirion

2014

Ecological Economics

155

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HAL is a multi-disciplinary open access archive for the deposit and dissemination of scientific research documents, whether they are published or not. The documents may come from teaching and research institutions in France or abroad, or from public or private research centers. AbstractThe efficiency of unilateral climate policies may be hampered by carbon leakage and competitiveness losses. A widely discussed policy option to reduce leakage and protect competitiveness of heavy industries is to impose border carbon adjustments (BCAs). The estimation of carbon leakage as well as the assessment of different policy options led to a substantial body of literature in energyeconomic modeling.In order to give a quantitative overview on the most recent research of the topic, we conduct a meta-analysis on 25 studies, altogether providing 310 estimates of carbon leakage ratio according to different assumptions and models. The typical range of carbon leakage estimates are from 5% to 25% (mean 14%) without policy and from -5% to 15% (mean 6%) with BCAs.A meta-regression analysis is performed to further investigate the impact of different assumptions on the leakage estimates. The decrease of the leakage ratio with the size of the coalition is confirmed and quantified. Among the BCAs options, the extension of BCAs to all sectors and the inclusion of export rebates are the most efficient features in the meta-regression model to reduce the leakage ratio. All other parameters being constant, BCAs reduce leakage ratio by 6 percentage points.

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Section: First Sightmentioning

confidence: 99%

Would border carbon adjustments prevent carbon leakage and heavy industry competitiveness losses? Insights from a meta-analysis of recent economic studies

Branger

Quirion

2014

Ecological Economics

155

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“…For the CGE model, the description follows the model structure shown in Figure 2 and sectoral model codes are used from Table 2. A detailed algebraic representation and information on the basic model parameterization can be found in Bednar-Friedl et al [40,41].…”

Section: Appendix a Extended Model Descriptionmentioning

confidence: 99%

“…This model of global trade, based on Bednar-Friedl et al [40,41] and Schinko et al [22] incorporates thirteen world regions listed in Table 1. Other emerging economies ECO 10 Latin America (w.o.…”

Section: Macroeconomic Frameworkmentioning

confidence: 99%

The Deployment of Low Carbon Technologies in Energy Intensive Industries: A Macroeconomic Analysis for Europe, China and India

et al. 2017

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Industrial processes currently contribute 40% to global CO 2 emissions and therefore substantial increases in industrial energy efficiency are required for reaching the 2 • C target. We assess the macroeconomic effects of deploying low carbon technologies in six energy intensive industrial sectors (Petroleum, Iron and Steel, Non-metallic Minerals, Paper and Pulp, Chemicals, and Electricity) in Europe, China and India in 2030. By combining the GAINS technology model with a macroeconomic computable general equilibrium model, we find that output in energy intensive industries declines in Europe by 6% in total, while output increases in China by 11% and in India by 13%. The opposite output effects emerge because low carbon technologies lead to cost savings in China and India but not in Europe. Consequently, the competitiveness of energy intensive industries is improved in China and India relative to Europe, leading to higher exports to Europe. In all regions, the decarbonization of electricity plays the dominant role for mitigation. We find a rebound effect in China and India, in the size of 42% and 34% CO 2 reduction, respectively, but not in Europe. Our results indicate that the range of considered low-carbon technology options is not competitive in the European industrial sectors. To foster breakthrough low carbon technologies and maintain industrial competitiveness, targeted technology policy is therefore needed to supplement carbon pricing.

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“…Combined, these effects may make global emissions higher. This phenomenon is called "carbon leakage", one main critique of PBE (Peters and Hertwich, 2008;Bednar-Friedl et al, 2012).…”

Section: Introductionmentioning

confidence: 99%

Carbon emissions embodied in demand–supply chains in China

Liu

Fan

et al. 2015

Energy Economics

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Using the multi-regional input-output model (MRIO), the paper distinguishes the carbon emissions embodied in commodities for domestic final consumption (CBEs, consumption-based emissions) and those for export (EBEs, export-based emissions), and then calculates carbon emissions embodied in the demand-supply chains for consumption and export based on technical coefficients matrix of the MRIO for one country. Taking China as an example, we provide a dynamic analysis of CBEs, EBEs, and carbon emissions embodied in consumption and export demand-supply chains at the sub-national level based on the MRIO tables for 1997 and 2007. The results show that, in China, the transferred carbon emissions embodied in demand-supply chains driven by consumption and export both showed rapid growth during [1997][1998][1999][2000][2001][2002][2003][2004][2005][2006][2007]. And the net transferred carbon emissions embodied in the demand-supply chains showed an increasing trend as well. Less developed regions with abundant fossil fuels tend to net flow out carbon emissions.

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The relevance of process emissions for carbon leakage: A comparison of unilateral climate policy options with and without border carbon adjustment

Cited by 81 publications

References 16 publications

Would border carbon adjustments prevent carbon leakage and heavy industry competitiveness losses? Insights from a meta-analysis of recent economic studies

Would border carbon adjustments prevent carbon leakage and heavy industry competitiveness losses? Insights from a meta-analysis of recent economic studies

The Deployment of Low Carbon Technologies in Energy Intensive Industries: A Macroeconomic Analysis for Europe, China and India

Carbon emissions embodied in demand–supply chains in China

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