Climate policy within an international emission trading system : a Swedish case

• This paper uses a CGE model to analyse the optimal climate policy in Sweden before and after introduction of the Emission Trading System (EU ETS) for CO2  emissions in the European Union. The optimal distribution of domestic energy tax rates is derived for different actors. It is shown that the welfare maximizing tax rates, before the introduction of EU ETS, is equal for all actors in the economy. After the introduction of the EU ETS, it is beneficial to have exemptions for installations covered by emission trading. Before the introduction of EU ETS the low tax rates for electricity induced substantial carbon emissions in neighbouring countries through the common Nordic market for electricity. This effect, however, is not present after the introduction of EU ETS.

Ämnesord

SAMHÄLLSVETENSKAP  -- Ekonomi och näringsliv -- Nationalekonomi (hsv//swe)

SOCIAL SCIENCES  -- Economics and Business -- Economics (hsv//eng)

Nyckelord

CO2 taxation; Energy taxation; Climate Policy; Computable General Equilibrium; Carbon Leakage; Emission Trading.

Economics

Nationalekonomi

SOCIAL SCIENCES

SAMHÄLLSVETENSKAP

Economics

Nationalekonomi

Publikations- och innehållstyp

vet (ämneskategori)

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