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Carbon leakage in the Nordic countries: What are the risks and how to design effective preventive policies
Responsible organisation
2019 (English)Book (Other academic)
Abstract [en]

Carbon leakage is a situation in which a policy-induced reduction in CO2 emissions domestically is followed by increased emissions abroad. We investigate from a Nordic perspective what industries are at risk of carbon leakage.

We find that aluminum and copper, basic iron and steel and paper, all having energy intensities over 40 per cent, have the highest risk of carbon leakage.

The policy of giving free emissions allowances to industries at risk of carbon leakage is relatively equally spread out, leaving industries at high risk “undercompensated” and industries at low risk “overcompensated”. We find that the leakage rates for the energy intensive industry from unilateral ambitious EU targets could be as high as 70%, and even as high as 85% if the Nordic countries unilaterally adopt more ambitious targets. The key to limit the risk of carbon leakage is collective global action.

Place, publisher, year, edition, pages
Copenhagen: Nordisk Ministerråd, 2019. , p. 82
Series
TemaNord, ISSN 0908-6692 ; 2019:525
National Category
Environmental Management
Research subject
Environment and Climate; Sustainable development; Energy; Globalisation; Public finance; Economy
Identifiers
URN: urn:nbn:se:norden:org:diva-5577DOI: 10.6027/TN2019-525ISBN: 978-92-893-6145-3 (print)ISBN: 978-92-893-6146-0 (electronic)ISBN: 978-92-893-6147-7 (electronic)OAI: oai:DiVA.org:norden-5577DiVA, id: diva2:1306902
Available from: 2019-05-02 Created: 2019-04-25 Last updated: 2019-06-13

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CiteExportLink to record
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Cite
Citation style
  • apa
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Language
  • de-DE
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Output format
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