Carbon Tariffs Revisited
Concerns about adverse impacts on domestic energy-intensive and trade-exposed (EITE) industries are at the fore of the political debate about unilateral climate policies. Tariffs on the carbon embodied in imported goods from countries without emission pricing appeal as a measure to reduce carbon leakage and protect domestic EITE industries. We show that the introduction of carbon tariffs can do more harm than good to domestic EITE industries. Two determinants drive the sign and magnitude of EITE impacts. Firstly, the composition of embodied emissions in goods: if a large share of embodied carbon is imported in intermediate inputs, industries might suffer from carbon tariffs. Secondly, the share of domestic output that is supplied to the export market: while carbon tariffs level the playing field on domestic markets, they increase the cost-disadvantage vis-à-vis competitors from abroad in foreign markets.
|Date of creation:||Jan 2014|
|Date of revision:||Jan 2014|
|Publication status:||Published in Oldenburg Working Papers V-364-14|
|Contact details of provider:|| Postal: 26111 Oldenburg|
Phone: +49 441 798-4107
Fax: +49 441 798-4116
Web page: http://www.vwl.uni-oldenburg.de/
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Balistreri, Edward J. & Rutherford, Thomas F., 2012.
"Subglobal carbon policy and the competitive selection of heterogeneous firms,"
Elsevier, vol. 34(S2), pages S190-S197.
- Edward J. Balistreri & Thomas F. Rutherford, 2012. "Subglobal Carbon Policy and the Competitive Selection of Heterogeneous Firms," Working Papers 2012-01, Colorado School of Mines, Division of Economics and Business.
- Guro Børnes Ringlund & Knut Einar Rosendahl & Terje Skjerpen, 2004.
"Does oilrig activity react to oil price changes? An empirical investigation,"
372, Statistics Norway, Research Department.
- Ringlund, Guro Bornes & Rosendahl, Knut Einar & Skjerpen, Terje, 2008. "Does oilrig activity react to oil price changes An empirical investigation," Energy Economics, Elsevier, vol. 30(2), pages 371-396, March.
- Hoel, Michael, 1991.
"Global environmental problems: The effects of unilateral actions taken by one country,"
Journal of Environmental Economics and Management,
Elsevier, vol. 20(1), pages 55-70, January.
- Hoel, M., 1989. "Global Environmental Problems: The Effects Of Unilateral Actions Taken By One Country," Memorandum 11/1989, Oslo University, Department of Economics.
- 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 S97-S110.
- Christoph Böhringer & Brita Bye & Taran Fæhn & Knut Einar Rosendahl, 2012.
"Alternative Designs for Tariffs on Embodied Carbon: A Global Cost-Effectiveness Analysis,"
V-345-12, University of Oldenburg, Department of Economics, revised Jun 2012.
- Böhringer, Christoph & Bye, Brita & Fæhn, Taran & Rosendahl, Knut Einar, 2012. "Alternative designs for tariffs on embodied carbon: A global cost-effectiveness analysis," Energy Economics, Elsevier, vol. 34(S2), pages S143-S153.
- Christoph Böhringer & Brita Bye & Taran Fæhn & Knut Einar Rosendahl, 2012. "Alternative designs for tariffs on embodied carbon. A global cost-effectiveness analysis," Discussion Papers 682, Statistics Norway, Research Department.
- Graham, Paul & Thorpe, Sally & Hogan, Lindsay, 1999. "Non-competitive market behaviour in the international coking coal market," Energy Economics, Elsevier, vol. 21(3), pages 195-212, June.
- Fischer, Carolyn & Fox, Alan K., 2012.
"Climate Policy and Fiscal Constraints: Do Tax Interactions Outweigh Carbon Leakage?,"
dp-12-19, Resources For the Future.
- Fischer, Carolyn & Fox, Alan K., 2012. "Climate policy and fiscal constraints: Do tax interactions outweigh carbon leakage?," Energy Economics, Elsevier, vol. 34(S2), pages S218-S227.
- Krichene, Noureddine, 2002. "World crude oil and natural gas: a demand and supply model," Energy Economics, Elsevier, vol. 24(6), pages 557-576, November.
- Caron, Justin, 2012. "Estimating carbon leakage and the efficiency of border adjustments in general equilibrium — Does sectoral aggregation matter?," Energy Economics, Elsevier, vol. 34(S2), pages S111-S126.
When requesting a correction, please mention this item's handle: RePEc:old:dpaper:364. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Catharina Schramm)
If references are entirely missing, you can add them using this form.