Robust policies to mitigate carbon leakage
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A novel approach is to complement OBR with consumption taxes to create a 'behind-the-border' approach that mimics full BCAs with uniform benchmarks.
“A novel approach is to complement OBR with consumption taxes to create a 'behind-the-border' approach that mimics full BCAs with uniform benchmarks 82 .”
From Potential impacts and challenges of border carbon adjustments (2022) · cites this paper as [82]
Modeling studies show that output-based free allocation protects against leakage.
“Modeling studies show that output-based free allocation protects against leakage (83), a conclusion reinforced by the absence of observed carbon leakage (84) (Section 2.3).”
From Carbon Leakage, Consumption, and Trade (2022) · cites this paper as [83]
Without rebates, exporters would be disadvantaged in export markets and lose market share, leading to leakage.
“Without rebates, however, they would be disadvantaged in export markets ( Figure 7 ) and lose market share, leading to leakage (83).”
From Carbon Leakage, Consumption, and Trade (2022) · cites this paper as [83]
While a climate excise contribution could be levied as standalone, it would be most effective as a measure to restore the carbon price downstream in combination with carbon pricing upstream.
“While a climate excise contribution could be levied as standalone, it would be most effective as a measure to restore the carbon price downstream in combination with carbon pricing upstream (83, 116).”
From Carbon Leakage, Consumption, and Trade (2022) · cites this paper as [83]
Implementing the climate excise contribution jointly with a benchmarked output-based allocation in an ETS ensures incentives for cleaner production while avoiding export leakage.
“Specifically, implementing the contribution jointly with a benchmarked output-based allocation in an ETS ensures incentives for cleaner production, (83, 116) while avoiding export leakage ( Figure 9 ).”
From Carbon Leakage, Consumption, and Trade (2022) · cites this paper as [83]
Cites
Martin, R., Muûls, M., de Preux, L. B., & Wagner, U. J. (2014) · American Economic Review · doi:10.1257/aer.104.8.2482 · Cited by 333 · see citing works
Border tax adjustment: a feasible way to support stringent emission trading
Ismer, R., & Neuhoff, K. (2007) · European Journal of Law and Economics · doi:10.1007/s10657-007-9032-8 · Cited by 244 · see citing works
Addressing leakage in the EU ETS: Border adjustment or output-based allocation?
Monjon, S., & Quirion, P. (2011) · Ecological Economics · doi:10.1016/j.ecolecon.2011.04.020 · Cited by 145 · cited 3× · see citing works
“…e.g. Horn and Mavroidis, 2011; Tamiotti, 2011; Böhringer et al., 2012b).1 One signal for its limited political feasibility is that – so far – border measures have only been proposed but not implemented.2 According to Monjon and Quirion (2011b), a uniform carbon tariff is ⁎ Corresponding author.”
BackgroundEU emissions trading and the cement sector: a spatial competition analysis
PONSSARD, J. P., & WALKER, N. (2008) · Climate Policy · doi:10.3763/cpol.2007.0500 · Cited by 132 · see citing works
The Strategic Value of Carbon Tariffs
Böhringer, C., Carbone, J. C., & Rutherford, T. F. (2016) · American Economic Journal: Economic Policy · doi:10.1257/pol.20130327 · Cited by 130 · see citing works
A border adjustment for the EU ETS: reconciling WTO rules and capacity to tackle carbon leakage
Monjon, S., & Quirion, P. (2011) · Climate Policy · doi:10.1080/14693062.2011.601907 · Cited by 85 · see citing works
The legal interface between carbon border measures and trade rules
Tamiotti, L. (2011) · Climate Policy · doi:10.1080/14693062.2011.592672 · Cited by 39 · see citing works
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Potential impacts and challenges of border carbon adjustments
Böhringer, C., Fischer, C., Rosendahl, K. E., & Rutherford, T. F. (2022) · Nature Climate Change · doi:10.1038/s41558-021-01250-z · Cited by 292 · see citing works
Self-citationCarbon Leakage, Consumption, and Trade
Grubb, M., Jordan, N. D., Hertwich, E., Neuhoff, K., Das, K., Bandyopadhyay, K. R., van Asselt, H., Sato, M., Wang, R., Pizer, W. A., et al. (2022) · Annual Review of Environment and Resources · doi:10.1146/annurev-environ-120820-053625 · Cited by 176 · see citing works
Sato, M., Rafaty, R., Calel, R., & Grubb, M. (2022) · WIREs Climate Change · doi:10.1002/wcc.796 · Cited by 59 · see citing works
Carbon fueling complex global value chains tripled in the period 1995–2012
Hertwich, E. G. (2020) · Energy Economics · doi:10.1016/j.eneco.2019.104651 · Cited by 49 · see citing works
An endogenous emissions cap produces a green paradox
Gerlagh, R., Heijmans, R. J. R. K., & Rosendahl, K. E. (2021) · Economic Policy · doi:10.1093/epolic/eiab011 · Cited by 46 · see citing works
Self-citationThe impact of implementing a consumption charge on carbon-intensive materials in Europe
Pollitt, H., Neuhoff, K., & Lin, X. (2020) · Climate Policy · doi:10.1080/14693062.2019.1605969 · Cited by 40 · see citing works
Endogenizing the Cap in a Cap-and-Trade System: Assessing the Agreement on EU ETS Phase 4
Beck, U., & Kruse-Andersen, P. K. (2020) · Environmental and Resource Economics · doi:10.1007/s10640-020-00518-w · Cited by 36 · see citing works
- Authors
- Böhringer, C., Rosendahl, K. E., & Storrøsten, H. B.
- Affiliations
- Norwegian University of Life Sciences (NO)
- Statistics Norway (NO)
- Corresponding author
- Rosendahl, Knut Einar
- Venue
- Journal of Public Economics
- Publisher
- Elsevier BV
- Published
- 2017-05
- Volume
- 149
- Pages
- 35-46
- ISSN
- 0047-2727 (ISSN-L)
- OpenAlex
- W2599222641
- Cited by
- 175
- References
- 7
- Citations by year
- 2026: 21 · 2025: 21 · 2024: 23 · 2023: 16 · 2022: 26 · 2021: 25 · 2020: 12 · 2019: 13 · 2018: 7 · 2017: 7 · 2015: 1
- FWCI
- 19.20
- Type
- journal article
- Language
- en
- Open access
- green
- hdl.handle.net
- Licence
- cc-by-nc-nd
- www.elsevier.com/tdm/userlicense/1.0/ (tdm)
- Locations
- Journal of Public Economics (publishedVersion)
- RePEc: Research Papers in Economics (submittedVersion)
- NORA - Norwegian Open Research Archives (submittedVersion, cc-by-nc-nd)
- Funders
- CREE (209698)
- Topics
- Social Sciences › Economics, Econometrics and Finance › Economics and Econometrics › Climate Change Policy and Economics
- Physical Sciences › Energy › Renewable Energy, Sustainability and the Environment › Energy, Environment, and Transportation Policies
- Social Sciences › Economics, Econometrics and Finance › Economics and Econometrics › Energy, Environment, Economic Growth
- Keywords
- carbon leakage, unilateral climate policy, border carbon adjustment, consumption tax, emissions pricing, welfare effects, lobbying, robust policy
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