IDEAS home Printed from https://ideas.repec.org/p/hal/journl/hal-00716359.html
   My bibliography  Save this paper

Conciliating industrial competitiveness and climate policy: Output-Based allocation of CO2 allowances or border adjustment? [Concilier compétitivité industrielle et politique climatique Faut-il distribuer les quotas de CO2 en fonction de la production]

Author

Listed:
  • D. Demailly

    (Netherlands Environmental Assessment Agency (MNP), P.O. Box 303, Bilthoven 3720 - affiliation inconnue)

  • Philippe Quirion

    (CIRED - centre international de recherche sur l'environnement et le développement - Cirad - Centre de Coopération Internationale en Recherche Agronomique pour le Développement - EHESS - École des hautes études en sciences sociales - AgroParisTech - ENPC - École des Ponts ParisTech - CNRS - Centre National de la Recherche Scientifique, LMD - Laboratoire de Météorologie Dynamique (UMR 8539) - UPMC - Université Pierre et Marie Curie - Paris 6 - INSU - CNRS - Institut national des sciences de l'Univers - X - École polytechnique - ENPC - École des Ponts ParisTech - CNRS - Centre National de la Recherche Scientifique - Département des Géosciences - ENS Paris - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris sciences et lettres)

Abstract

We compare four proposals for the European Union greenhouse gas Emission Trading Scheme (ets): auctioning of allowances, distribution of allowances proportional to current output, auctioning with border adjustment, and a hybrid distribution with auctioning for power production and output-based allocation in the other sectors. We develop a partial equilibrium model of the eu 27 featuring three sectors covered by the ets: cement, steel and electricity, as well as aluminium, indirectly impacted through the electricity price. The co2 leakage rate ranges from 8% under auctioning to - 2% with the border adjustment, and varies a lot across sectors. The aggregate economic cost is the highest with output-based allocation and the lowest with the border adjustment. © Presses de Sciences Po.

Suggested Citation

  • D. Demailly & Philippe Quirion, 2008. "Conciliating industrial competitiveness and climate policy: Output-Based allocation of CO2 allowances or border adjustment? [Concilier compétitivité industrielle et politique climatique Faut-il distri," Post-Print hal-00716359, HAL.
    • Handle: RePEc:hal:journl:hal-00716359
    DOI: 10.3917/reco.593.0497
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:hal:journl:hal-00716359. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: CCSD (email available below). General contact details of provider: https://hal.archives-ouvertes.fr/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.