The Effects of Domestic Climate Change Measures on International Competitiveness
Under the Kyoto Protocol, industrialised countries (called Annex I countries) have to reduce their combined emissions to 5 per cent below 1990 levels in the first commitment period of 2008-12. Efforts to reduce emissions to meet Kyoto targets and beyond have raised issues of competitiveness in count...
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2012
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| Online Access: | http://hdl.handle.net/10986/5901 |
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okr-10986-59012021-04-23T14:02:23Z The Effects of Domestic Climate Change Measures on International Competitiveness Kee, Hiau Looi Ma, Hong Mani, Muthukumara Climate Natural Disasters Global Warming Q540 Environment and Development Environment and Trade Sustainability Environmental Accounting Environmental Equity Population Growth Q560 Environmental Economics: Government Policy Q580 Under the Kyoto Protocol, industrialised countries (called Annex I countries) have to reduce their combined emissions to 5 per cent below 1990 levels in the first commitment period of 2008-12. Efforts to reduce emissions to meet Kyoto targets and beyond have raised issues of competitiveness in countries that are implementing these policies, as well as fear of leakage of carbon-intensive industries to non-implementing countries. This has also led to proposals for tariff or border tax adjustments to offset any adverse impact of capping CO2 emissions. In this paper we examine the implications of climate change policies such as carbon tax and energy efficiency standards on competitiveness across industries, as well as issues related to leakage, if any, of carbon-intensive industries to developing countries. Though competitiveness issues have been much debated in the context of carbon taxation policies, the study finds no evidence that industries' competitiveness is affected by carbon taxes. In fact, the analysis suggests that exports of most energy-intensive industries increase when a carbon tax is imposed by the exporting countries, or by both importing and exporting countries. This finding gives credence to the initial assumption that recycling the taxes back to the energy-intensive industries by means of subsidies and exemptions may be overcompensating for the disadvantage to those industries. There is, however, no conclusive evidence that supports relocation (leakage) of carbon-intensive industries to developing countries due to stringent climate change policies. 2012-03-30T07:35:05Z 2012-03-30T07:35:05Z 2010 Journal Article World Economy 03785920 http://hdl.handle.net/10986/5901 EN http://creativecommons.org/licenses/by-nc-nd/3.0/igo 3666 World Bank Journal Article |
| repository_type |
Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
EN |
| topic |
Climate Natural Disasters Global Warming Q540 Environment and Development Environment and Trade Sustainability Environmental Accounting Environmental Equity Population Growth Q560 Environmental Economics: Government Policy Q580 |
| spellingShingle |
Climate Natural Disasters Global Warming Q540 Environment and Development Environment and Trade Sustainability Environmental Accounting Environmental Equity Population Growth Q560 Environmental Economics: Government Policy Q580 Kee, Hiau Looi Ma, Hong Mani, Muthukumara The Effects of Domestic Climate Change Measures on International Competitiveness |
| relation |
http://creativecommons.org/licenses/by-nc-nd/3.0/igo |
| description |
Under the Kyoto Protocol, industrialised countries (called Annex I countries) have to reduce their combined emissions to 5 per cent below 1990 levels in the first commitment period of 2008-12. Efforts to reduce emissions to meet Kyoto targets and beyond have raised issues of competitiveness in countries that are implementing these policies, as well as fear of leakage of carbon-intensive industries to non-implementing countries. This has also led to proposals for tariff or border tax adjustments to offset any adverse impact of capping CO2 emissions. In this paper we examine the implications of climate change policies such as carbon tax and energy efficiency standards on competitiveness across industries, as well as issues related to leakage, if any, of carbon-intensive industries to developing countries. Though competitiveness issues have been much debated in the context of carbon taxation policies, the study finds no evidence that industries' competitiveness is affected by carbon taxes. In fact, the analysis suggests that exports of most energy-intensive industries increase when a carbon tax is imposed by the exporting countries, or by both importing and exporting countries. This finding gives credence to the initial assumption that recycling the taxes back to the energy-intensive industries by means of subsidies and exemptions may be overcompensating for the disadvantage to those industries. There is, however, no conclusive evidence that supports relocation (leakage) of carbon-intensive industries to developing countries due to stringent climate change policies. |
| format |
Journal Article |
| author |
Kee, Hiau Looi Ma, Hong Mani, Muthukumara |
| author_facet |
Kee, Hiau Looi Ma, Hong Mani, Muthukumara |
| author_sort |
Kee, Hiau Looi |
| title |
The Effects of Domestic Climate Change Measures on International Competitiveness |
| title_short |
The Effects of Domestic Climate Change Measures on International Competitiveness |
| title_full |
The Effects of Domestic Climate Change Measures on International Competitiveness |
| title_fullStr |
The Effects of Domestic Climate Change Measures on International Competitiveness |
| title_full_unstemmed |
The Effects of Domestic Climate Change Measures on International Competitiveness |
| title_sort |
effects of domestic climate change measures on international competitiveness |
| publishDate |
2012 |
| url |
http://hdl.handle.net/10986/5901 |
| _version_ |
1764396712318730240 |