US Climate Policy: A Critical Assessment of Intensity Standards

30 Pages Posted: 27 Jun 2017

See all articles by Christoph Böhringer

Christoph Böhringer

University of Oldenburg

Xaquín Garcia-Muros

Basque Centre for Climate Change (BC3), Students

Mikel Gonzalez-Eguino

Basque Centre for Climate Change (BC3)

Luis Rey

Basque Centre for Climate Change (BC3)

Date Written: November 23, 2015

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 Standards; Computable General Equilibrium

JEL Classification: D21; H23; D58

Suggested Citation

Böhringer, Christoph and Garcia-Muros, Xaquín and Gonzalez-Eguino, Mikel and Rey, Luis, US Climate Policy: A Critical Assessment of Intensity Standards (November 23, 2015). ZenTra Working Paper in Transnational Studies No. 61 / 2015, Available at SSRN: https://ssrn.com/abstract=2694431

Christoph Böhringer (Contact Author)

University of Oldenburg

Ammerländer Heerstraße 114-118
Oldenburg, D-26111
Germany

Xaquín Garcia-Muros

Basque Centre for Climate Change (BC3), Students ( email )

Gran Vía 35-2
Bilbao, 48009
Spain

Mikel Gonzalez-Eguino

Basque Centre for Climate Change (BC3) ( email )

Gran Vía 35-2
Bilbao, Vizcaya 48009
Spain

Luis Rey

Basque Centre for Climate Change (BC3) ( email )

Gran Vía 35-2
Bilbao, Vizcaya 48009
Spain

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
7
Abstract Views
179
PlumX Metrics