Effective, efficient or equitable: Using allowance allocations to mitigate emissions leakage

Climate Policy

Volumn 11, Issue 4, 2011, Pages 1113-1130

  Heilmayr, Robert ^a   Bradbury, James A ^b  

^a STANFORD UNIVERSITY   (United States)

^b WORLD RESOURCES INSTITUTE   (United States)

Author keywords

Allowance allocation; Carbon leakage; Competitiveness; Economic efficiency; Equity; Policy formation

Indexed keywords

CARBON EMISSION; CLIMATE CHANGE; COMPETITIVENESS; EMISSION CONTROL; ENVIRONMENTAL POLICY; EUROPEAN UNION;

AUSTRALIA; UNITED STATES;

EID: 79960015081     PISSN: 14693062     EISSN: 17527457     Source Type: Journal    
DOI: 10.1080/14693062.2011.579291     Document Type: Article

References (58)

1. Å hman, M., Burtraw, D., Kruger, J.A., Zetterberg, L., 2007, 'The ten-year rule: allocation of emission allowances in the EU emissions trading system', Energy Policy 35(3), 1718-1730.
2. Aldy, J., Pizer, W., 2009, The Competitiveness Impacts of Climate Change Mitigation Policies, Pew Center on Global Climate Change, Arlington, VA [available at www.pewclimate.org/international/CompetitivenessImpacts].
3. Australian Government, 2008, Carbon Pollution Reduction Scheme: Australia's Low Pollution Future, White Paper [available at www.climatechange.gov.au/publications/cprs/white-paper/cprs-whitepaper.aspx].
4. Australian Government, 2009, Draft - Carbon Pollution Reduction Scheme Regulations 2009 [available atwww.climate change.gov.au/publications/cprs/cprs-regulations-2009.aspx].
5. Bassi, A., Yudken, J., Ruth, M., 2009, 'Climate policy impacts on the competitiveness of energy-intensive manufacturing sectors', Energy Policy 37(8), 3052-3060.
6. Bernard, A.L., Fischer, C., Fox, A.K., 2007, 'Is there a rationale for output-based rebating of environmental levies?', Resource and Energy Economics 29(2), 83-101.
7. Blue-Green Alliance, 2009, Policy Statement on Climate Change Legislation, Blue-Green Alliance, Minneapolis, MN [available at http://bluegreenalliance.articulatedman.com/admin/publications/files/0007.4.pdf].
8. 2 Emissions Allowances in the Regional Greenhouse Gas Cap-and-Trade Program, Discussion Paper 05-25, Resources for the Future, Washington, DC [available at www. rff.org/documents/RFF-DP-05-25.pdf].
9. Burtraw, D., Sweeney, S., Walls, M.A., 2008, The Incidence of U.S. Climate Policy: Where You Stand Depends on Where You Sit, Discussion Paper 08-28, Resources for the Future, Washington, DC.
10. Carbon Trust, 2008, EU ETS Impacts on Profitability and Trade: A Sector by Sector Analysis [available at www.carbontrust. co.uk/publications/pages/publicationdetail.aspx?id=CTC728].
11. Centre for Integrated Sustainability Analysis, 2009, Consultants Reports: Supplementary Data, Commissioned by the Department of Climate Change, Australian Government
12. Chen, Y., 2009, 'Does a regional greenhouse gas policy make sense? A case study of carbon leakage and emissions spillover', Energy Economics 31(5), 667-675.
13. Commonwealth of Australia, Department of the Treasury, 2008, Australia's Low Pollution Future: The Economics of Climate Change Mitigation [available at www.treasury.gov.au/lowpollutionfuture/].
14. Commission of the European Communities, 2009, Draft Commission Staff Working Document Impact Assessment, Accompanying document to Commission Decision determining a list of sectors and subsectors which are deemed to be exposed to a significant risk of carbon leakage pursuant to Article 10a (13) of Directive 2003/87/EC, Brussels
15. Condliffe, S., Morgan, O.A., 2009, 'The effects of air quality regulations on the location decisions of pollution-intensive manufacturing plants', Journal of Regulatory Economics 36(1), 83-93.
16. Conway, T., 2009, Testimony before the Subcommittee on Energy and Environment, Committee on Energy and Commerce, U.S. House of Representatives on April 23, Representing the United Steelworkers Union [available at http://energycommerce.house.gov/Press_111/20090423/testimony_conway.pdf].
17. de Bruyn, S., Markowska, A., de Jong, F., Bles, M., 2010, Does the Energy Intensive Industry Obtain Windfall Profits Through the EU ETS? An econometric analysis for products from the refineries, iron and steel and chemical sectors, European Climate Foundation, Delft.
18. 2 abatement, competitiveness and leakage in the European cement industry under the EU ETS: grandfathering vs. output-based allocation', Climate Policy 6(1), 93-113.
19. Demailly, D., Quirion, P., 2008, 'European emission trading scheme and competitiveness: a case study on the iron and steel industry', Energy Economics 30(4), 2009-2027.
20. Dröge, S., 2009, Tackling Leakage in a World of Unequal Carbon Prices, Climate Strategies Report, Climate Strategies, Cambridge, UK [available at www.climatestrategies.org/our-reports/category/32/153.html].
21. Dworsky, M., Goulder, L., Hafstead, M., 2009, How Would a Federal Cap-and-Trade Climate Policy Affect Profits and GDP? Policy Brief, Stanford Institute for Economic Policy Research (SIEPR), Stanford University, Stanford, CA [available at http://siepr.stanford.edu/publicationsprofile/1987].
22. Ellerman, A.D., 2008, 'New entrant and closure provisions: how do they distort?', Energy Journal 29(Special Issue), 63-76.
23. European Parliament, 2009, Directive 2009/29/EC of the European Parliament and of the Council of 23 April 2009 Amending Directive 2003/87/EC so as to improve and extend the greenhouse gas emission allowance trading scheme of the Community [available at http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=CELEX:32009L0029:EN:NOT].
24. European Union, 2009, Emissions Trading: Member States Approve List of Sectors Deemed to be Exposed to Carbon Leakage, Press release IP/09/1338, September 18 [available at http://europa.eu/rapid/pressReleasesAction.do?reference=IP/09/1338].
25. Fischer, C., 2001, Rebating Environmental Policy Revenues: Output-Based Allocations and Tradable Performance Standards, Discussion Paper 01-22, Resources for the Future, Washington, DC.
26. Fischer, C., Fox, A., 2004, Output-Based Allocations of Emissions Permits: Efficiency and Distributional Effects in a General Equilibrium Setting with Taxes and Trade, Discussion Paper 04-37, Resources for the Future, Washington, DC.
27. Fischer, C., Fox, A., 2009, Comparing Policies to Combat Emissions Leakage: Border Tax Adjustments Versus Rebates, Discussion Paper 09-02, Resources for the Future, Washington, DC.
28. Fischer, C., Newell, R.G., 2007, Environmental and Technology Policies for Climate Mitigation, Discussion Paper 04-05, Resources for the Future, Washington, DC.
29. Fortson, D., 2008, 'Power giants under fire', The Independent, 18 January [available at www.independent.co.uk/news/business/analysis-and-features/power-giants-under-fire-770938.html].
30. Garnaut, R., 2008, The Garnaut Climate Change Review, Cambridge University Press, Melbourne.
31. 2 Abatement Policies on Energy-Intensive Industries, Discussion Paper 02-22, Resources for the Future, Washington, DC.
32. Henderson, J.V., 1996, 'Effects of air quality regulation', The American Economic Review 86(4), 789-813.
33. Ho, M., Morgenstern, R., Shih, J.S., 2008, The Impact of Carbon Price Policies on U.S. Industry, RFFDiscussion Paper 08-37.
34. Hoppock, D., Bean, P.,Williams, E., 2009, The Influence of Technology and a Carbon Cap on Natural Gas Markets, Duke University, Durham, NC.
35. Houser, T., Bradley, R., Childs, B., Werksman, J., Heilmayr, R., 2008, Leveling the Carbon Playing Field: International Competition and US Climate Policy Design, Peterson Institute for International Economics and World Resources Institute, Washington, DC.
36. Kuik, O., Mulder, M., 2004, 'Emissions trading and competitiveness: pros and cons of relative and absolute schemes', Energy Policy 32(6), 737-745.
37. MOE (Ministry of Environment), Japan, 2008, Approach to Japanese Emissions Trading Scheme Interim Report (Executive Summary), Advisory Committee on the Emissions Trading Scheme, Ministry of the Environment, Japan [available at www.env.go.jp/en/earth/cc/ajets-ir-080520.pdf].
38. McMackin, J., 2009a, Testimony on behalf of The Energy-Intensive Manufacturers' Working Group on Greenhouse Gas Regulation Before the House Committee on Energy and Commerce, Subcommittee on Energy, March [available at http://energycommerce.house.gov/Press_111/20090318/testimony_mcmackin.pdf].
39. McMackin, J., 2009b, Testimony on behalf of The Energy-Intensive Manufacturers' Working Group on Greenhouse Gas Regulation Before the House Committee on Energy and Commerce, Subcommittee on Energy, April [available at http://energycommerce.house.gov/Press_111/20090423/testimony_mcmackin.pdf].
40. Pezzey, J.C., Mazouz, S., Jotzo, F., 2010. 'The logic of collective action and Australia's climate policy', Australian Journal of Agricultural and Resource Economics 54(2), 185-202.
41. Quirion, P., 2009, 'Historic versus output-based allocation of GHG tradable allowances: a comparison', Climate Policy 9(6), 575-592.
42. Reinaud, J., 2004, Industrial competitiveness under the European Union Emissions Trading Scheme, Information Paper, International Energy Agency, Paris.
43. Reinaud, J., 2008, Issues behind competitiveness and carbon leakage: Focus on Heavy Industry, Information Paper, International Energy Agency, OECD/IEA, Paris.
44. Schultze, C., 1977, The Public Use of Private Interest, Brookings Institution Press, Washington, DC.
45. 2 cost pass-through and windfall profits in the power sector', Climate Policy 6(1), 49-72.
46. US BEA (US Bureau of Economic Analysis, 2008, 2002 Benchmark Input Output Data [available at www.bea.gov/industry/io_benchmark.htm#2002data].
47. US Census (US Census Bureau), 2008, 2006 Annual Survey of Manufacturers [available at www.census.gov/manufacturing/asm/historical_data/index.html].
48. USCAP (US Climate Action Partnership), 2009, Blueprint for Legislative Action [available atwww.us-cap.org/PHPages/wp-content/uploads/2010/05/USCAP_Blueprint.pdf].
49. US EIA (US Energy Information Administration), 2004, Annual Energy Outlook [available at www.eia.doe.gov/oiaf/archive.html].
50. US EIA (US Energy Information Administration), 2005, 2002 Manufacturing Energy Consumption Survey [available at http://eia.doe.gov/emeu/mecs/mecs2006/2006tables.html].
51. US EIA (US Energy Information Administration), 2008, Annual Energy Outlook [available at www.eia.doe.gov/oiaf/archive.html].
52. US EIA (US Energy Information Administration), 2009, Energy Market and Economic Impacts of H.R. 2454, the American Clean Energy and Security Act of 2009, Report No.: SR-OIAF/2009-05 [available at www.eia.doe.gov/oiaf/servicerpt/hr2454/index.html].
53. US EPA (US Environmental Protection Agency), 2009, Analysis of American Clean Energy Security Act, April [available at www.epa.gov/climatechange/economics/economicanalyses.html#hr2454].
54. US House of Representatives, 2009a, H.R. 2454, The American Clean Energy and Security Act, 111th Congress [available at http://thomas.loc.gov/cgi-bin/query/z?c111:H.R.2454:]. US House of Representatives, 2009b, H.R. 1759, The EMPLOY Act, 111th Congress [available at http://thomas.loc.gov/cgi-bin/query/z?c111:H.R.1759:].
55. US Interagency Report, 2009, The Effects of H.R. 2454 on International Competitiveness and Emission Leakage in Energy-Intensive Trade-Exposed Industries [available at www.epa.gov/climatechange/economics/economicanalyses. html#interagency].
56. US Senate, 2009, S. 1733, The Clean Energy Jobs and American Power Act, 111th Congress [available at http://thomas.loc.gov/cgi-bin/query/z?c111:S.1733:].
57. Werksman, J., Bradbury, J.A., Weischer, L., 2009, Trade Measures and Climate Change Policy: Searching for Common Ground on an Uneven Playing Field,Working Paper,World Resources Institute,Washington, DC, December 2009.
58. Williams, E., 2008, Greenhouse Gas Allowance Allocation: Cost Pass-Through, Sector Differentiation and Economic Implications, Working Paper 08-01, Nicholas Institute, Durham, NC, February 2008 [available at http://nicholasinstitute.duke.edu/climate/policydesign/greenhouse-gas-allowance-allocation-cost-pass-through-sectordifferentiation-and-economic-implications].