dc.contributor.author | Böhringer, Christoph | |
dc.contributor.author | Rosendahl, Knut Einar | |
dc.contributor.author | Storrøsten, Halvor Briseid | |
dc.coverage.spatial | Norge | nb_NO |
dc.date.accessioned | 2019-07-08T11:41:32Z | |
dc.date.available | 2019-07-08T11:41:32Z | |
dc.date.issued | 2015-10 | |
dc.identifier.issn | 1892-753X | |
dc.identifier.uri | http://hdl.handle.net/11250/2603737 | |
dc.description | All three authors are affiliated with the Oslo Centre for Research on Environmentally friendly Energy (CREE) and appreciate financial support from the Research Council of Norway through CREE. | nb_NO |
dc.description.abstract | Unilateral climate policy induces carbon leakage through the relocation of emission-intensive and trade-exposed industries to regions with no or more lenient emission regulation. Both analytical and numerical studies suggest that emission pricing combined with border carbon adjustment is a second-best instrument, and more cost-effective than output-based rebating, in which case domestic output is indirectly subsidized. No country has so far imposed border carbon adjustment, while variants of output-based rebating have been implemented. In this paper we show that combining output-based rebating for emission-intensive and trade-exposed goods with a consumption tax on the same goods can be equivalent with border carbon adjustment. Moreover, we demonstrate that it is welfare improving for a region which has already implemented emission pricing along with outputbased rebating to also introduce such a consumption tax. We conclude that supplementing outputbased rebating with a consumption tax constitutes smart hedging against carbon leakage: Compared to output-based rebating stand-alone it constitutes a robust strategy for improving cost-effectiveness of unilateral climate policy; compared to border carbon adjustment it limits the risks of potentially detrimental trade disputes. | nb_NO |
dc.language.iso | eng | nb_NO |
dc.publisher | Statistisk sentralbyrå | nb_NO |
dc.relation.ispartofseries | Discussion papers;No.822 | |
dc.subject | Carbon leakage | nb_NO |
dc.subject | Output-based rebating | nb_NO |
dc.subject | Border carbon adjustment | nb_NO |
dc.subject | Consumption tax | nb_NO |
dc.title | Smart hedging against carbon leakage | nb_NO |
dc.type | Working paper | nb_NO |
dc.description.version | publishedVersion | nb_NO |
dc.source.pagenumber | 44 s. | nb_NO |