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Identifying carbon leakage sectors in the EU ETS and implications of results

Author

Listed:
  • Ingmar Juergens
  • Jesús Barreiro-Hurl�
  • Alexander Vasa

Abstract

A detailed description of the European Commission's carbon leakage quantitative assessment methodology is used to assess sectors at risk of carbon leakage. It sets out the steps taken to follow the EU Emissions Trading Scheme (EU ETS) Directive and the necessary work to generate useful data sets, as well as gaps in the assessment and its results. The resulting list of sectors at risk of carbon leakage is discussed from a broader perspective. The impact on emissions exempt from auctioning is also quantified. The results of the carbon leakage assessment show that, despite the carbon leakage provisions of the EU ETS Directive, the majority of emission allowances will be auctioned in Phase III of the EU ETS and, moreover, that the majority of emissions that will be freely allocated originate from only a small number of energy-intensive sectors.

Suggested Citation

  • Ingmar Juergens & Jesús Barreiro-Hurl� & Alexander Vasa, 2013. "Identifying carbon leakage sectors in the EU ETS and implications of results," Climate Policy, Taylor & Francis Journals, vol. 13(1), pages 89-109, January.
    • Handle: RePEc:taf:tcpoxx:v:13:y:2013:i:1:p:89-109
    DOI: 10.1080/14693062.2011.649590
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    Cited by:

    1. Yu, Pei & Cai, Zhengfang & Sun, Yongping, 2021. "Does the emissions trading system in developing countries accelerate carbon leakage through OFDI? Evidence from China," Energy Economics, Elsevier, vol. 101(C).
    2. Ralf Martin & Mirabelle Mu?ls & Laure B. de Preux & Ulrich J. Wagner, 2014. "Industry Compensation under Relocation Risk: A Firm-Level Analysis of the EU Emissions Trading Scheme," American Economic Review, American Economic Association, vol. 104(8), pages 2482-2508, August.
    3. Frédéric Branger, Philippe Quirion, Julien Chevallier, 2017. "Carbon Leakage and Competitiveness of Cement and Steel Industries Under the EU ETS: Much Ado About Nothing," The Energy Journal, International Association for Energy Economics, vol. 0(Number 3).
    4. Martin, Ralf & Muûls, Mirabelle & de Preux, Laure B. & Wagner, Ulrich J., 2014. "On the empirical content of carbon leakage criteria in the EU Emissions Trading Scheme," Ecological Economics, Elsevier, vol. 105(C), pages 78-88.
    5. Fournier Gabela, Julio G. & Freund, Florian, 2022. "Potential carbon leakage risk: A cross-sector cross-country assessment in the OECD area," Conference papers 333468, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    6. J. G. Fournier Gabela & F. Freund, 2023. "Potential carbon leakage risk: a cross-sector cross-country assessment in the OECD area," Climatic Change, Springer, vol. 176(5), pages 1-21, May.
    7. Misato Sato & Karsten Neuhoff & Verena Graichen & Katja Schumacher & Felix Matthes, 2013. "Sectors under scrutiny � Evaluation of indicators to assess the risk of carbon leakage in the UK and Germany," GRI Working Papers 113, Grantham Research Institute on Climate Change and the Environment.
    8. Misato Sato & Karsten Neuhoff & Verena Graichen & Katja Schumacher & Felix Matthes, 2015. "Sectors Under Scrutiny: Evaluation of Indicators to Assess the Risk of Carbon Leakage in the UK and Germany," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 60(1), pages 99-124, January.
    9. Maria Csutora & Zs�fia Vetőn� m�zner, 2014. "Proposing a beneficiary-based shared responsibility approach for calculating national carbon accounts during the post-Kyoto era," Climate Policy, Taylor & Francis Journals, vol. 14(5), pages 599-616, September.
    10. Frédéric Branger & Oskar Lecuyer & Philippe Quirion, 2015. "The European Union Emissions Trading Scheme: should we throw the flagship out with the bathwater?," Wiley Interdisciplinary Reviews: Climate Change, John Wiley & Sons, vol. 6(1), pages 9-16, January.
    11. Kristina Govorukha & Philip Mayer & Dirk Rübbelke, 2021. "Fragmented Landscape of European Policies in the Energy Sector: First-Mover Advantages," CESifo Working Paper Series 9093, CESifo.
    12. Pan, Wenqi & Chang, Wei-Yew & Wu, Ting & Zhang, Han & Ning, Zhuo & Yang, Hongqiang, 2021. "Impacts of the China-US trade restrictions on the global forest sector: A bilateral trade flow analysis," Forest Policy and Economics, Elsevier, vol. 123(C).

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