Conference Agenda
Overview and details of the sessions of this conference. Please select a date or location to show only sessions at that day or location. Please select a single session for detailed view (with abstracts and downloads if available).
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Daily Overview |
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International Trade Location: D-104 Session Chair: Finn Ole Semrau, Kiel Institute for the World Economy | |
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Industry energy support and its interaction with EU ETS 1: Tilburg University and Netherlands Environmental Assessment Agency, Netherlands, The; 2: Netherlands Bureau for Economic Policy, Den Haag, Netherlands; 3: Netherlands Environmental Assessment Agency, Den Haag, Netherlands In this paper we study recent proposals to reduce the energy cost of the industry in the European Union as part of an industrial policy that should lift competitiveness of this sector worldwide. Using an applied general equilibrium model explicitly suited to study overlapping instruments in the context of European EU ETS we compare three support programs by a coalition of three EU countries with a large energy-intensive industrial sector, in particular France, Germany and the Netherlands. Subsidies boost competitiveness in the short run though with an increase in European emissions as long as the active Market Stability Reserve dampens the waterbed effect within the EU ETS. Interestingly, in some cases, support policies may lead to lower global emissions, since the subsidized industrial sectors within the coalition are relatively clean. | |