Zusammenfassung:
This paper discusses the attributes and design of alternative mitigation instruments for the industrial sector, their competitiveness and emissions leakage impacts, and supplementary measures to address these effects. A quantitative analysis indicates, for selective countries, production cost increases under a $50 per tonne unilateral CO2 price in 2030 are 4-8 percent for steel, 20-30 percent for chemicals, and 30-35 percent for cement with leakage rates of 20-50 percent across these industries. Competitiveness and leakage impacts are however much smaller under pricing with border adjustments, other mitigation instruments like feebates and performance standards, or internationally coordinated pricing.