SWEEEP Seminar Series- Perino Grischa

February 24, 2021 – h. 03:00 – 04:00  pm CET

Speaker: Grischa Perino, U Hamburg

Abstract

We present an integrated framework to understand the emissions impact of unilateral overlapping policies within a carbon-pricing system. “Internal carbon leakage” captures emissions displacement within the system (e.g., due to greater product imports from a neighbouring country). The waterbed effect captures the policy’s interaction with the system’s overall emissions cap. Current market rules in the reformed EU ETS, California’s carbon market and RGGI feature “punctured” waterbeds that allow overlapping policies to affect aggregate emissions. We present simple formulae to estimate internal carbon leakage for different types of policy such as a carbon price floor (perhaps with a border tax adjustment), an energy efficiency program, and renewables support. The sign and magnitude of the climate benefit from an overlapping policy varies widely depending on its design, location and timing. Punctured waterbeds raise the stakes: well-designed overlapping policies can be much more climate-effective but others now backfire.

HOW TO PARTICIPATE

The webinar will be broadcasted via Zoom.
Please, click on the following link for registration:
https://zoom.us/meeting/register/tJUodeqgpzMtEtZDyBYDeBjeYncl__ec1ZGL

After registering, you will receive a confirmation email containing information about joining the webinar.

ORGANIZED BY:

RFF-CMCC European Institute on Economics and the Environment (EIEE)