Technical Workshop 14: Carbon Leakage: Theory, Evidence and Policy (Sweimeh, Dead Sea)
Carbon prices are intended to have an efficient and fair impact on the relative competitiveness of firms. They are expected to favor innovative, clean firms and facilitate the exit or upgrade of the least efficient firms in emissions-intensive industries, thereby improving the overall efficiency of the economy. Carbon prices are particularly effective at achieving this outcome if they are similar across jurisdictions. However, efforts to price GHG emissions around the world remain fragmented. A phenomenon known as carbon leakage occurs if such differences in emission costs lead to the relocation of carbon-intensive activities and related emissions from more to less stringent jurisdictions. This workshop explored concerns over carbon leakage and reviewed how they can best be addressed, drawing on experience from around the world.
Date:
Oct 27, 2015
Venue:
Sweimeh, Dead Sea, Jordan
| October 27, 2015 | ||
| 1. Introduction | ||
| 9:00 | ||
| Venkata Ramana Putti, World Bank Group | ||
| Technical Note on Carbon Leakage: Theory, Practice and Policy Design | ||
| 2. Understanding the Concept of Carbon Leakage: Theory and Evidence | ||
| This session introduced the concept of carbon leakage with an overview of the theory and evidence around the concept. Presenters also defined carbon leakage and discussed its key drivers. The session finished with a panel that discussed different approaches to assessing carbon leakage and the related empirical evidence. | ||
| 9:15 | ||
| Moderator: Grzegorz Peszko, World Bank Group | ||
| Jason Eis, Vivid Economics | ||
| Carbon Leakage: Theory and Evidence | ||
| Mary Jane Coombs, Air Resources Board, California | ||
| Hana Huzjak, European Commission | ||
| Sharlin Hemraj, National Treasury, South Africa | ||
| 10:30 | Break | |
| 3. Policy Responses to Carbon Leakage | ||
| This session provided an overview of some of the policy responses that countries have implemented or are preparing to address the risk of carbon leakage, drawing on experience from around the world. Then there were group exercises that covered two broad issues that policy makers need to consider when they design leakage prevention measures: (a) the sectors or activities that will be supported and (b) the form that such support will take. | ||
| 10:45 | ||
| Moderator: Pauline Kennedy, PMR Secretariat | ||
| Jason Eis, Vivid Economics | ||
| An Overview on Policy Options for Leakage Prevention and Key Design Choices | ||
| Group exercises that covered four case studies | ||
| California: Policy Responses to Carbon Leakage | ||
| EU: Policy Responses to Carbon Leakage | ||
| New Zealand: Policy Responses to Carbon Leakage | ||
| South Africa: Policy Responses to Carbon Leakage | ||
| 12:25 | ||
| Venkata Ramana Putti, World Bank Group | ||
| 12:30 | Wrap up | |
| End of workshop | ||