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On the empirical content of carbon leakage criteria in the EU emissions trading scheme

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dc.affiliation.dptoUC3M. Departamento de Economíaes
dc.contributor.authorMartin, Ralf
dc.contributor.authorMuûls, Mirabelle
dc.contributor.authorPreux, Laure B. de
dc.contributor.authorWagner, Ulrich J
dc.date.accessioned2015-05-15T16:35:04Z
dc.date.available2015-05-15T16:35:04Z
dc.date.issued2014-04
dc.description.abstractThe EU Emissions Trading Scheme continues to exempt industries deemed at risk of carbon leakage from permit auctions. Carbon leakage risk is established based on the carbon intensity and trade exposure of each 4-digit industry. Using a novel measure of carbon leakage risk obtained in interviews with almost 400 managers at regulated firms in six countries, we show that carbon intensity is strongly correlated with leakage risk whereas overall trade exposure is not. In spite of this, most exemptions from auctioning are granted to industries with high trade exposure to developed and less developed countries. Our analysis suggests two ways of tightening the exemption criteria without increasing relocation risk among non-exempt industries. The first one is to exempt trade exposed industries only if they are also carbon intensive. The second one is to consider exposure to trade only with less developed countries. By modifying the carbon leakage criteria along these lines, European governments could raise additional revenue from permit auctions of up to €3 billion per year, based on a permit price of €30en
dc.description.sponsorshipThe authors gratefully acknowledge financial support from the British Academy (Martin), from the Leverhulme Trust (Muûls) and from the Spanish Government, reference numbers SEJ2007-62908 and ECO2012-31358 (Wagner)en
dc.description.statusPublicadoes
dc.format.mimetypeapplication/pdf
dc.identifier.bibliographicCitationMartin, R., de Preux, L.B., y Wagner, U.J., "On the Empirical Content of Carbon Leakage Criteria in the EU Emissions Trading Scheme", Ecological Economics, September 2014, v. 105, pp. 78-88en
dc.identifier.doi10.1016/j.ecolecon.2014.05.010
dc.identifier.issn0921-8009
dc.identifier.publicationfirstpage78es
dc.identifier.publicationlastpage88es
dc.identifier.publicationtitleEcological Economicsen
dc.identifier.publicationvolume105
dc.identifier.urihttps://hdl.handle.net/10016/20734
dc.language.isoengen
dc.publisherElsevieren
dc.relation.projectIDGobierno de España. ECO2012-31358es
dc.relation.publisherversionhttp://dx.doi.org/10.1016/j.ecolecon.2014.05.010
dc.rights© Elsevieren
dc.rights.accessRightsopen accessen
dc.subject.ecienciaEconomíaes
dc.subject.jelH23
dc.subject.jelH25
dc.subject.jelQ52
dc.subject.jelQ54
dc.subject.jelF18
dc.subject.otherCarbon leakageen
dc.subject.otherIndustrial relocationen
dc.subject.otherEmissions tradingen
dc.subject.otherEU ETSen
dc.subject.otherPermit allocationen
dc.subject.otherFirm dataen
dc.titleOn the empirical content of carbon leakage criteria in the EU emissions trading schemeen
dc.typeresearch article*
dc.type.hasVersionAM*
dspace.entity.typePublication
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