• Energy Research

Border carbon adjustments imply that high-income countries set taxes on energy-intensive imports that are proportional to the carbon content of these imports, to match their own carbon taxes. This paper considers the impacts of such a policy on exporter countries, many of which have no or very low carbon taxes today. The paper first studies a policy whereby the importer allows the exporter’s border tax to be reduced by its own comprehensive carbon tax (“tax rebating”). The analysis finds that the exporter is then incentivized to set its own comprehensive carbon tax at the same rate as the border tax, up to a maximal rate. When the border tax is higher, the exporter instead reduces its carbon tax. Border tax revenues of the high-income country can be returned to incentivize higher carbon taxes in the exporting countries (“carbon crediting”). When tax rebating is not allowed but tax revenues are fully returned, even higher exporter carbon taxes can then be incentivized, possibly exceeding $60 per ton of carbon dioxide in the numerical examples. Border taxation can give rise to export diversion away from border tax-setting countries, which reduces the scope for incentivizing the exporter’s carbon tax. The paper also studies how taxes on oil extraction by oil exporters can be incentivized by oil importing countries, by increasing their oil import prices above world market rates, or more efficiently through support to investments in exporters’ renewable energy capacity.

We study the effects of carbon taxation and revenue recycling across the income distribution in Ireland. Price changes of fuels and all other final goods and services are taken into account. If applied only to the emissions not covered by the EU Emissions Trading Scheme, a carbon tax of €20/tCO2 would cost the poorest households around €3.5/week and the richest ones €5/week. The tax is regressive, therefore. However, if the revenue is used to increase social benefits and tax credits, households across the income distribution can be made better off without exhausting the total carbon tax revenue.

Government regulations and responsible customers’ behavior are key drivers for businesses to adopt respectful management strategies towards the environment and reduce the overall carbon emissions of their supply chains.Under a strict carbon emissions legislation and the increased awareness of customers about carbon emissions issues, companies are now pushed to improve their environmental performance to achieve better profits. Thus, they need to make optimal decisions within their Supply Chain Management to reduce the carbon emissions that are generated from their various activities.In this context, we identify the issue of the low carbon supply chain management. In this thesis, our objective is first to study this problem and to identify its key drivers. We then aim to review the literature and to study how quantitative models have addressed this problem and its related constraints. We therefore develop new models of low carbon supply design problems under the carbon tax legislation, which is recognized to be one of the relevant applied carbon legislations. In our proposed models, we particularly emphasize on the features of this carbon regulation that have been ignored within the literature. We first study strategic decisions of the company taking into consideration the non-homogeneous carbon tax scheme between countries. We then, study the investment decision of the company under a progressive carbon tax strategy. Through analytical and numerical analyses, we study the impact of such carbon legislations schemes on strategic decisions of the company and its performances. We aim to provide companies with a decision support tool to help them make optimal strategic decisions under this carbon legislation. We also provide recommendations to governments, as to which carbon tax legislations are the most efficient. Finally, we initiate the development of stochastic models to study the strategic investment problem in such an environmental context. We first consider a random customer demand, and then a dynamic and ...

Government regulations and responsible customers’ behavior are key drivers for businesses to adopt respectful management strategies towards the environment and reduce the overall carbon emissions of their supply chains.Under a strict carbon emissions legislation and the increased awareness of customers about carbon emissions issues, companies are now pushed to improve their environmental performance to achieve better profits. Thus, they need to make optimal decisions within their Supply Chain Management to reduce the carbon emissions that are generated from their various activities.In this context, we identify the issue of the low carbon supply chain management. In this thesis, our objective is first to study this problem and to identify its key drivers. We then aim to review the literature and to study how quantitative models have addressed this problem and its related constraints. We therefore develop new models of low carbon supply design problems under the carbon tax legislation, which is recognized to be one of the relevant applied carbon legislations. In our proposed models, we particularly emphasize on the features of this carbon regulation that have been ignored within the literature. We first study strategic decisions of the company taking into consideration the non-homogeneous carbon tax scheme between countries. We then, study the investment decision of the company under a progressive carbon tax strategy. Through analytical and numerical analyses, we study the impact of such carbon legislations schemes on strategic decisions of the company and its performances. We aim to provide companies with a decision support tool to help them make optimal strategic decisions under this carbon legislation. We also provide recommendations to governments, as to which carbon tax legislations are the most efficient. Finally, we initiate the development of stochastic models to study the strategic investment problem in such an environmental context. We first consider a random customer demand, and then a dynamic and uncertain carbon tax regulation. We proceed to the evaluation of our developed stochastic models through numerical examples and comparisons of their results to those of deterministic models that are widely studied within the literature.; Sous la pression externe des gouvernements et des clients conscients des enjeux environnementaux, les entreprises sont plus que jamais obligées de réduire leurs émissions de carbone. Par conséquent, elles sont poussées à trouver les moyens pour optimiser la gestion de leurs chaînes logistiques afin d’améliorer leurs performances environnementale et économique. Dans ce cadre s’intègre la problématique de gestion de chaîne logistique à faible teneur en carbone qui consiste à repenser les décisions de la gestion de la CL en vue de réduire les émissions de carbone. Dans la présente thèse, nous abordons cette problématique. Nous cherchons d’abord à comprendre les différentes caractéristiques de ce problème et à identifier ses facteurs clés. Une telle étude demeure essentielle pour faciliter l’analyse de la littérature existante en termes de modélisation et d’incorporation de paramètres liés aux émissions de carbone dans les modèles mathématiques d’aide à la décision. Nous proposons ensuite de contribuer à la littérature en développant de nouveaux modèles de conception de chaîne logistique sous la législation de la taxe carbone, en proposant une meilleure intégration de cette réglementation. Nous considérons alors dans nos modèles, d’une part, la non homogénéité des taxes carbone entre les pays, puis d’autre part, la progressivité de ce système législatif. A travers la résolution analytique et numérique de nos modèles, nous étudions l’impact de la taxe carbone sur les décisions stratégiques des entreprises et leurs performances. Nous mettons ainsi l’accent sur l’efficacité de cet outil législatif, ainsi que sur les nouvelles directives à mettre en place par les gouvernements pour mieux inciter les entreprises à minimiser leurs impacts indésirables sur l’environnement. Finalement, nous initions la modélisation sous incertitude du problème d’investissement stratégique dans le cadre de la législation de taxe carbone, en considérant d’abord une demande client aléatoire, puis des taxes carbone évolutives et incertaines. Nous proposons une évaluation de nos modèles stochastiques développés en les exploitant sur des exemples numériques et en les comparant aux modèles déterministes largement étudiés dans la littérature.

This report provides an overview of the fundamental choices involved between a cost (tax) and a quantity (cap) control instrument, including a discussion of policy tools that could be employed to bridge the gap between a carbon tax and a cap-and-trade program. It also analyzes the potential advantages and disadvantages of a carbon tax, discusses implementation issues for a carbon tax -- including where to apply the tax, at what level to set the tax, and options for distributing the tax revenues-- and provides conclusions.

Other chapters of this Handbook show that environmental taxes are very interesting instruments for environmental regulation. The question addressed in this chapter is whether they are still interesting when the environmental problem is a global one. Are they still effective and efficient? Are they feasible and acceptable? First, however, a few definitions are needed: what are global environmental problems and how could taxes help address them?