Industry compensation under recolation risk: a firm-level analysis of the EU emissions trading scheme

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dc.contributor.author Martin, Ralf
dc.contributor.author Muûls, Mirabelle
dc.contributor.author Preux, Laure B. de
dc.contributor.author Wagner, Ulrich J
dc.date.accessioned 2015-05-11T15:47:14Z
dc.date.available 2015-05-11T15:47:14Z
dc.date.issued 2014-08
dc.identifier.bibliographicCitation Martin, R., de Preux, L.B., y Wagner, U.J., "Industry Compensation Under Relocation Risk: A Firm-level Analysis of the EU Emissions Trading Scheme", American Economic Review, 2014, v. 104, n. 8, pp. 2482-2508
dc.identifier.issn 0002-8282
dc.identifier.uri http://hdl.handle.net/10016/20685
dc.description.abstract When regulated firms are offered compensation to prevent them from relocating, efficiency requires that payments be distributed across firms so as to equalize marginal relocation probabilities, weighted by the damage caused by relocation. We formalize this fundamental economic logic and apply it to analyzing compensation rules proposed under the EU Emissions Trading Scheme, where emission permits are allocated free of charge to carbon intensive and trade exposed industries. We show that this practice results in substantial overcompensation for given carbon leakage risk. Efficient permit allocation reduces the aggregate risk of job loss by more than half without increasing aggregate compensation
dc.description.sponsorship The 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).
dc.description.uri 10.1257/aer.104.8.2482
dc.format.mimetype application/pdf
dc.language.iso eng
dc.publisher American Economic Association
dc.rights © American Economic Association
dc.subject.other Industry compensation
dc.subject.other Industrial relocation
dc.subject.other Emissions trading
dc.subject.other Permit allocation
dc.subject.other EU ETS
dc.subject.other Firm data
dc.title Industry compensation under recolation risk: a firm-level analysis of the EU emissions trading scheme
dc.type article
dc.description.status Publicado
dc.relation.publisherversion http://dx.doi.org/10.1257/aer.104.8.2482
dc.subject.jel H23
dc.subject.jel H25
dc.subject.jel Q52
dc.subject.jel Q54
dc.subject.jel F18
dc.subject.eciencia Economía
dc.rights.accessRights openAccess
dc.relation.projectID Gobierno de España. ECO2012-31358
dc.type.version acceptedVersion
dc.identifier.publicationfirstpage 2482
dc.identifier.publicationissue 8
dc.identifier.publicationlastpage 2508
dc.identifier.publicationtitle American Economic Review
dc.identifier.publicationvolume 104
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