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GTAP Resource #6864

"Potential carbon leakage risk in agriculture under future EU-ETS scenarios"
by Fournier Gabela, Julio G. and Florian Freund


Abstract
Unilateral climate mitigation policies could significantly increase carbon leakage risk in agricultural sectors. One of these policies is the European Union's Emission Trading System (EU-ETS), which could affect agricultural sectors differently depending on its future design and stringency. This paper reviews the relevant carbon leakage channels in agriculture and estimates its magnitude in these sectors under different future EU-ETS scenarios until 2050. To simulate these scenarios, we use the Modular Applied General Equilibrium Tool (MAGNET) model and consider CO2 and non-CO2 emissions. Our preliminary results (not shown) show considerable carbon leakage effects under some EU-ETS scenarios. Furthermore, we find that the proposed EU's carbon border adjustment mechanism cannot considerably reduce these effects.


Resource Details (Export Citation) GTAP Keywords
Category: 2023 Conference Paper
Status: Not published
By/In: Presented during the 26th Annual Conference on Global Economic Analysis (Bordeaux, France)
Date: 2023
Version: 1
Created: Fournier Gabela, J. (4/12/2023)
Updated: Fournier Gabela, J. (4/12/2023)
Visits: 284
- Climate change policy
- Land use
- Trade and the environment
- GTAP Data Base and extensions
- European Union


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