Showing papers by "Christoph Böhringer published in 2022"
TL;DR: In this article , the potential environmental and economic impact of border carbon adjustment on leakage reduction, competitiveness restoration, cost-effectiveness, equity and cooperation enhancement is discussed. But, the authors do not discuss the legal and practical challenges for implementation.
Abstract: Harmonized carbon pricing across borders is hard to achieve in the real world as carbon leakage can reduce the cost-effectiveness of unilateral approaches to reduce global emissions. To address this problem, border carbon adjustments (BCAs) would apply the domestic carbon price to emissions embodied in traded goods, which levels the playing field for emissions-intensive and trade-exposed industries. Here, we review the potential environmental and economic impact of border carbon adjustments on leakage reduction, competitiveness restoration, cost-effectiveness, equity and cooperation enhancement. We find that the viability of border carbon adjustment schemes can be substantially reduced with the current legal and practical implementation constraints. Border carbon adjustments are appraised as a measure to address carbon leakage and competitiveness concerns. This Review Article discusses the possible impacts, as well as practical challenges for implementation.
50 citations
TL;DR: In this paper , the authors compare and explain how political and economic institutional differences influenced efforts to balance energy transition concerns, like speed and cost-effectiveness with justice for companies, workers and communities most adversely affected by the transition.
9 citations
TL;DR: In this article , the authors examine the consequences of phasing out coal, for CO 2 emissions, the electricity sector, and the broader economy, and show analytically how the welfare impacts for a phaseout region depend on whether and how allowances are canceled, whether other countries join phaseout policies, and terms-of-trade effects in the ETS market.
4 citations
TL;DR: The authors analyzes the incentives created by two novel forms of rebating that reward additional emission intensity reductions: one given in proportion to output (intensity-based output rebating) and another that rebates a share of emission payments (intensitybased emission rebating).
Abstract: Carbon-pricing policies worldwide are increasingly coupled with direct or indirect subsidies where emissions pricing revenues are rebated to the regulated entities. This study analyzes the incentives created by two novel forms of rebating that reward additional emission intensity reductions: one given in proportion to output (intensity-based output rebating) and another that rebates a share of emission payments (intensity-based emission rebating). These forms are contrasted with output-based rebating, abatement-based rebating, and lump-sum rebating. Given the same emission price, intensity-based output rebating incentivizes the most intensity reductions, while abatement-based rebating causes the most output reductions, and output-based rebating puts the least pressure on output (and emissions); intensity-based emissions rebating lies in between these, by implicitly subsidizing emissions while incentivizing intensity reductions. The study supplements partial equilibrium theoretical analysis with numerical simulations to assess the performance of different mechanisms in a multisector general equilibrium model that accounts for economy-wide market interactions.
1 citations