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The Value-Added of Sectoral Disaggregation: Implication on Competitive Consequences of Climate Change Policies

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  • Victoria Alexeeva-Talebi
  • Andreas Löschel
  • Christoph Böhringer
  • Sebastian Voigt

Abstract

Multi-sector, multi-region computable general equilibrium (CGE) models are typically based on the most recent consistent accounts of region- and sector-specific production, consumption, bilateral trade and energy flows as provided by the GTAP data base. However, even the most recent data base version (GTAP7) does not provide sufficient detail at the sectoral level as it covers energyintensive industries (EII) at a relatively low level of sectoral disaggregation. The latter possesses a significant drawback for the analysis of the carbon leakage risks.Against this background, this paper elaborates on the availability of data resources and methodology of data set construction with a high level of sectoral disaggregation. The extensions in terms of sectoral coverage are carried out to explicitly represent cement, steel and aluminium sector in a CGE model of global trade and energy PACE. In order to perform the sectoral split of EII sectors within the GTAP7 database, additional information on production, energy consumption and trade relations for each subsector are collected and discussed in details.Building upon these prerequisites, the paper evaluates the value-added of sectoral disaggregation efforts by quantifying the macroeconomic implications in two model set-ups: with and without high sectoral disaggregation level.

Suggested Citation

  • Victoria Alexeeva-Talebi & Andreas Löschel & Christoph Böhringer & Sebastian Voigt, 2011. "The Value-Added of Sectoral Disaggregation: Implication on Competitive Consequences of Climate Change Policies," EcoMod2011 3100, EcoMod.
  • Handle: RePEc:ekd:002625:3100
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    1. repec:eee:resene:v:49:y:2017:i:c:p:201-217 is not listed on IDEAS
    2. Paroussos, Leonidas & Fragkos, Panagiotis & Capros, Pantelis & Fragkiadakis, Kostas, 2015. "Assessment of carbon leakage through the industry channel: The EU perspective," Technological Forecasting and Social Change, Elsevier, vol. 90(PA), pages 204-219.
    3. repec:eee:eneeco:v:70:y:2018:i:c:p:233-243 is not listed on IDEAS
    4. repec:eee:resene:v:52:y:2018:i:c:p:186-215 is not listed on IDEAS
    5. repec:eee:eneeco:v:68:y:2017:i:s1:p:148-168 is not listed on IDEAS
    6. Koesler, Simon, 2013. "Catching the rebound: Economy-wide implications of an efficiency shock in the provision of transport services by households," ZEW Discussion Papers 13-082, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
    7. Antimiani, Alessandro & Costantini, Valeria & Kuik, Onno & Paglialunga, Elena, 2016. "Mitigation of adverse effects on competitiveness and leakage of unilateral EU climate policy: An assessment of policy instruments," Ecological Economics, Elsevier, vol. 128(C), pages 246-259.
    8. Kaltenegger, Oliver & Löschel, Andreas & Pothen, Frank, 2017. "The effect of globalisation on energy footprints: Disentangling the links of global value chains," Energy Economics, Elsevier, vol. 68(S1), pages 148-168.
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    10. Böhringer, Christoph & Balistreri, Edward J. & Rutherford, Thomas F., 2012. "The role of border carbon adjustment in unilateral climate policy: Overview of an Energy Modeling Forum study (EMF 29)," Energy Economics, Elsevier, vol. 34(S2), pages 97-110.
    11. Hübler, Michael & Löschel, Andreas, 2013. "The EU Decarbonisation Roadmap 2050—What way to walk?," Energy Policy, Elsevier, vol. 55(C), pages 190-207.
    12. Antimiani, Alessandro & Costantini, Valeria & Paglialunga, Elena, 2015. "The sensitivity of climate-economy CGE models to energy-related elasticity parameters: Implications for climate policy design," Economic Modelling, Elsevier, vol. 51(C), pages 38-52.
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    17. repec:eee:eneeco:v:72:y:2018:i:c:p:470-485 is not listed on IDEAS
    18. Alessandro Antimiani & Valeria Costantini & Elena Paglialunga, 2015. "An analysis of the sensitivity of a dynamic climate-economy CGE model (GDynE) to empirically estimated energy-related elasticity parameters," SEEDS Working Papers 0515, SEEDS, Sustainability Environmental Economics and Dynamics Studies, revised Mar 2015.
    19. Waschik, Robert, 2015. "Differentiated products, increasing returns to scale and heterogeneous firms in a CGE model of the Australian coal sector," Energy Economics, Elsevier, vol. 51(C), pages 521-529.
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    More about this item

    Keywords

    EU-27 ; General equilibrium modeling; Energy and environmental policy;

    JEL classification:

    • D58 - Microeconomics - - General Equilibrium and Disequilibrium - - - Computable and Other Applied General Equilibrium Models
    • H21 - Public Economics - - Taxation, Subsidies, and Revenue - - - Efficiency; Optimal Taxation
    • H22 - Public Economics - - Taxation, Subsidies, and Revenue - - - Incidence
    • Q48 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Government Policy

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