Concilier compétitivité industrielle et politique climatique Faut-il distribuer les quotas de CO2 en fonction de la production

Damien Deaaailly; Philippe Quirion

doi:10.3917/reco.593.0497

Concilier compétitivité industrielle et politique climatique Faut-il distribuer les quotas de CO₂ en fonction de la production

Translated title of the contribution: Conciliating industrial competitiveness and climate policy: Output-Based allocation of CO₂ allowances or border adjustment?

Damien Deaaailly
, Philippe Quirion

ClRED (UMR CNRS/EHESS/ENPO/ENGREF
CIRED

Research output: Contribution to journal › Article › peer-review

Abstract

We compare four proposals for the European Union greenhouse gas Emission Trading Scheme (ets): auctioning of allowances, distribution of allowances proportional to current output, auctioning with border adjustment, and a hybrid distribution with auctioning for power production and output-based allocation in the other sectors. We develop a partial equilibrium model of the eu 27 featuring three sectors covered by the ets: cement, steel and electricity, as well as aluminium, indirectly impacted through the electricity price. The co2 leakage rate ranges from 8% under auctioning to - 2% with the border adjustment, and varies a lot across sectors. The aggregate economic cost is the highest with output-based allocation and the lowest with the border adjustment.

Translated title of the contribution	Conciliating industrial competitiveness and climate policy: Output-Based allocation of CO₂ allowances or border adjustment?
Original language	French
Pages (from-to)	497-504
Number of pages	8
Journal	Revue Economique
Volume	59
Issue number	3
DOIs	https://doi.org/10.3917/reco.593.0497
Publication status	Published - 1 Jan 2008

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Concilier compétitivité industrielle et politique climatique Faut-il distribuer les quotas de CO₂ en fonction de la production

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