Abstract
The EU emissions trading scheme will not only affect the cost structures and competitiveness of the sectors covered directly by the trading scheme, but — through changes in energy demand and thus energy prices — will also have repercussions on the entire EU market. As Europe is closely tied to the rest of the world by international trade, it will also change the position of European business on the world markets and is likely to influence international energy prices as well.
So far, research has been mainly confined to a qualitative analysis of the EU. Few studies — mainly focussing on Kyoto trading and not the EU scheme — have tried to give quantitative results. Other EU specific studies estimate abatement costs of emission reductions and prices, but ignore international effects. Against this background, the aim of this study is to assess the range of possible implications of the trading scheme using the computable general equilibrium model DART that accounts for European and international linkages. As a result, it is possible to estimate the direct economic costs for the European business as well as the trade and competitiveness effects in a globalizing world.
This is a preview of subscription content, log in via an institution to check access.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
Preview
Unable to display preview. Download preview PDF.
References
Balance RH (1988) Trade Performance as an Indicator of Comparative Advantage. In: Greenway D (ed) Economic Development and International Trade. MacMillan Education Ltd., Houndmills, pp. 6–24
Barker T, Johnstone N (1998) International competitiveness and carbon taxation. In: Terry Barker T, Köhler J (eds) International Competitiveness and Environmental Policies. Edward Elgar, Cheltham, pp. 71–139
Boemare C, Quirion P (2002) Implementing Greenhouse Gas Trading in Europe: Lessons from Economic Literature and International Experience. Ecological Economics 43:213–230
Böhringer C (2002) Industry-level Emission Trading between Power Producers in the EU. Applied Economics 34: 523–533
Capros P, Mantzos L (2000a) The Economic Effects of Industry-Level Emission Trading to Reduce Greenhouse Gases. Report to DG Environment
Capros P, Mantzos L (2000b) The Economic Effects of EU-Wide Industry-Level Emission Trading to Reduce Greenhouse Gases. Institute of Communication and Computer Systems of National Technical University of Athens
Capros P, Mantzos L, Vaino M, Zapfel P (2002) Economic Efficiency of Cross-sectoral Emissions Trading in CO2 in the European Union. In: Albrecht J (ed) Instruments for Climate Policy. Edward Elgar Cheltham, pp. 25–62
EIA (Energy Information Administration) (2002) International Energy Outlook 2002
European Commission (2003) The EU Emissions Trading Scheme: How to develop a National Allocation Plan. (Non-paper of the 2nd meeting of Working Group 3, Monitoring Mechanism Committee, Directorate General Environment, 1st April 2003)
Eyckman J, Cornillie J (2002) Supplementarity in the European Carbon Emission Market. In: Albrecht J (ed) Instruments for Climate Policy. Edward Elgar Cheltham, pp. 96–127
Gagelmann F, Hansjürgens B (2002) Climate Protection through Tradable Permits: The EU Proposal for an Emissions Trading System in Europe. European Environment 12: 185–202
Jenkins R (1998) Environmental Regulation And International Competitiveness: A review of Literature and Some European Evidence. Discussion Paper No 9801, United Nations University INTECH, Maastricht
Klepper G (2003) International Trade and Competitiveness Effects of Emissions Trading. CATEP Policy Brief
Klepper G, Peterson S, Springer K (2003) DART97: A Description of the Multi-regional, Multi-sectoral Trade Model for the Analysis of Climate Policies. Kiel Working Papers no 1149 Kiel Institute for World Economics
Shin S (2003) Kyoto-Protokoll, Wettbewerb und WTO-Handelssystem. HWWA Discussion Paper No 215, Hamburg
Siebert H (2002) Außenwirtschaft, Gustav Fischer Verlag, Stuttgart
Springer K (2002) Climate Policy in a Globalizing World: A CGE Model with Capital Mobility and Trade. Kieler Studien 320. Springer, Berlin
Viguier L, Babiker MH, Reilly JM (2003) The costs of the Kyoto Protocol in the European Union. Energy Policy 32: 459–481
Zhang ZX (2002) The Economic Effects of an Alternative EU Emissions Policy. Journal of Policy Modeling 24: 667–677
Author information
Authors and Affiliations
Editor information
Editors and Affiliations
Rights and permissions
Copyright information
© 2006 Physica-Verlag Heidelberg
About this chapter
Cite this chapter
Peterson, S. (2006). The EU emissions trading scheme and its competitiveness effects upon European business — results from the CGE model DART. In: Antes, R., Hansjürgens, B., Letmathe, P. (eds) Emissions Trading and Business. Physica-Verlag HD. https://doi.org/10.1007/3-7908-1748-1_19
Download citation
DOI: https://doi.org/10.1007/3-7908-1748-1_19
Publisher Name: Physica-Verlag HD
Print ISBN: 978-3-7908-1747-8
Online ISBN: 978-3-7908-1748-5
eBook Packages: Business and EconomicsEconomics and Finance (R0)