Carbon Taxation if Liquefied Coal will (not) Substitute Oil and Gas
Mr Florian Habermacher, Inst. of Intl. and Applied Econ. Research, Uni. of St.Gallen Current and conceivable near-term climate protection measures are regionally constrained. We analyse leakage effects of unilateral climate policies, separately for major fossil fuels. In a business-as-usual scenario without future technological changes, unilateral oil (or gas) consumption reductions through climate protection measures are subject to very large leakage effects over the long run: because these fuels are strongly exhaustible, our dynamic fuel-market model shows that demand in the part of the world without stringent climate policies will offset a large fraction of domestic emission reductions in the medium-run notably because the lower domestic consumption reduces the fuel prices on the global markets. This is different for coal, which is much more abundant even in the medium-term future. Because coal reserves are so large, simulations show that medium-term leakage rates are low for domestic coal reductions, as these reductions have a comparatively small effect on the coal prices in other parts of the world. In this scenario, a unilateral carbon tax on coal emissions should correspond approximately to the Read more…
Categories: Academic Papers, Energy and environment, Energy economics
Tags: Carbon tax, Coal, conference 2012, Emission reductions, European Energy in a Challenging World, Fossil fuels
Carbon-Taxation-if-Liquefied-Coal-will-not-Substitute-Oil.pdf 473.99 KBHabermacher_Carbon-Taxation-if-Liquefied-Coal-will-not-Substitute-Oil.pdf 851.95 KBSep
2012