The effects of carbon prices and anti-leakage policies on selected industrial sectors

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This paper assesses the impacts of carbon prices and anti-leakage policy measures in the European Union on the cement, steel and oil refining sectors in Spain, particularly considering the risk of leakage. The assessment is carried out by means of three engineering models developed for this purpose. Our results, in line with previous estimates, show some specificities, such as the high exposure to leakage of cement in coastal regions. The study also shows a significant risk of leakage for the oil refining sector, which is strengthened by the large diesel share of the European car fleet. However, small border tax adjustments could address this risk.

Author: Pedro Linares & Alberto Santamar
Year: 2012
Type: Final paper
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