US Climate Policy: A Critical Assessment of Intensity Standards

Christoph Böhringer, Xaquín Garcia-Muros, Mikel González-Eguino and Luis Rey ()
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Xaquín Garcia-Muros: Basque Centre for Climate Change, Bilbao, Spain

No V-384-15, Working Papers from University of Oldenburg, Department of Economics

Abstract: Intensity standards have gained substantial momentum as a regulatory instrument in US climate policy. Based on numerical simulations with a large-scale computable general equilibrium model we show that intensity standards may rather increase than decrease counterproductive carbon leakage. Moreover, standards can lead to considerable welfare losses compared to emission pricing via carbon taxation or an emissions trading system. The tradability of standards across industries is a mechanism that can reduce these negative effects.

Keywords: Unilateral climate policy; carbon leakage, intensity sstandard, computable general equilibrium (search for similar items in EconPapers)
JEL-codes: D21 D58 H23 (search for similar items in EconPapers)
Pages: 29 pages
Date: 2015-07, Revised 2015-07
New Economics Papers: this item is included in nep-cmp, nep-ene, nep-env, nep-reg and nep-res
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Published in Oldenburg Working Papers V-384-15

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http://www.uni-oldenburg.de/fileadmin/user_upload/ ... ete/vwl/V-384-15.pdf First version, 2015 (application/pdf)

Related works:
Journal Article: US climate policy: A critical assessment of intensity standards (2017)
Working Paper: US climate policy: a critical assessment of intensity standards (2015)
Working Paper: US Climate Policy: A Critical Assessment of Intensity Standards (2015)
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