This paper assesses the impacts on the cement, steel and oil refining sectors in Spain of the carbon prices derived from the European Emissions Trading Scheme (EU ETS), and the potential effect on these sectors of the European Union anti-leakage policy measures. The assessment is carried out by means of three engineering models developed for this purpose. Our results show a high exposure to leakage of cement in coastal regions; a smaller risk in the steel sector, and non-negligible risk of leakage for the oil refining sector when carbon allowance prices reach high levels. We also find that the risk of leakage could be better handled with other anti-leakage policies than those currently in place in the EU.
Keywords: Carbon leakage; EU ETS; Cement; Steel; Oil refining
Energy Policy. Volume: 65 Pages: 708-717
Journal Impact Factor: JCR impact factor 4.039 (2017)
DOI reference: 10.1016/j.enpol.2013.10.031
Published on paper: February 2014. Published on-line: November 2013.