Should the EU Move Beyond 20 % GHG Emissions Reduction by 2020? Addressing Sectoral Carbon Leakage Concerns
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2016
- ISIDORE Id: 10670/1.131c75...
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border adjustment emission trading scheme sectoral carbon leakage free allocation industrial productionSujets proches
Industrial production Law of supply and demand Demand and supply Industrial production Industrial production IndustryCiter ce document
Stéphanie Monjon, « Should the EU Move Beyond 20 % GHG Emissions Reduction by 2020? Addressing Sectoral Carbon Leakage Concerns », Économie & prévision, ID : 10670/1.131c75...
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The greenhouse gas emissions trading scheme (EU ETS) is a cornerstone of European climate policy. The recent economic crisis has led to a significant reduction in the price signal produced by the instrument and may delay the investments needed for the transition to a low-carbon society. The European Commission has proposed a more stringent emission reduction target for the scheme, but this could increase carbon leakage in the industrial sectors exposed to international competition. We analyse the impact of this increased carbon constraint using a static partial equilibrium model representing the EU ETS. Different allocation modes are evaluated, focusing on their impact on sectoral carbon leakage but also on industrial production.
