Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/334628 
Year of Publication: 
2025
Series/Report no.: 
CESifo Working Paper No. 12272
Publisher: 
Munich Society for the Promotion of Economic Research - CESifo GmbH, Munich
Abstract: 
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.
Subjects: 
climate mitigation
carbon pricing
competitiveness
emission leakage
border carbon adjustment
feebates
JEL: 
Q31
Q35
Q48
H23
Document Type: 
Working Paper
Appears in Collections:

Files in This Item:
File
Size





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.