Assessing Policy Support for Emissions-Intensive and Trade-Exposed Industries

The School of Public Policy Publications

48 Pages Posted: 27 Nov 2018

See all articles by Sarah Dobson

Sarah Dobson

University of Calgary - The School of Public Policy

Jennifer Winter

University of Calgary - The School of Public Policy; University of Calgary - Dept of Economics

Date Written: October 25, 2018

Abstract

Jurisdictions implementing emissions pricing often face concerns arising from emissions-intensive and trade exposed (EITE) industries. These industries face higher costs than counterparts in other jurisdictions without emissions pricing. There is also risk of emissions leakage, where economic activity from EITE industries in a jurisdiction with emissions pricing leaves for jurisdictions without pricing, leading to lower economic activity and no net reduction in emissions. As a result of these two concerns, jurisdictions implementing carbon pricing often implement complementary policy to mitigate the cost impacts on EITE industries. In this paper we provide an overview of the EITE definitions and support policies in place in Canada and compare those to definitions and policies in Australia, California and the European Union. We evaluate both domestic and international EITE support policies using the metrics of administrative costs, economic efficiency, emissions reduction incentive, and equity across and within sectors.

Suggested Citation

Dobson, Sarah and Winter, Jennifer, Assessing Policy Support for Emissions-Intensive and Trade-Exposed Industries (October 25, 2018). The School of Public Policy Publications. Available at SSRN: https://ssrn.com/abstract=3277162

Sarah Dobson (Contact Author)

University of Calgary - The School of Public Policy ( email )

Calgary, Alberta
Canada

Jennifer Winter

University of Calgary - The School of Public Policy ( email )

Calgary, Alberta
Canada

HOME PAGE: http://www.policyschool.ca

University of Calgary - Dept of Economics ( email )

2500 University Drive, NW
Calgary, Alberta T2N 1N4
Canada

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