Climate Change Research ›› 2019, Vol. 15 ›› Issue (4): 427-435.doi: 10.12006/j.issn.1673-1719.2018.190

• Greenhouse Gas Emissions • Previous Articles     Next Articles

Carbon market, sector competitiveness and carbon leakage: steel sector case

Wen-Bin LIN,A-Lun GU(),Bin LIU,Zhao-Xin WANG,Ling-Ling ZHOU   

  1. Institute of Energy, Environment and Economy, Tsinghua University, Beijing 100084, China
  • Received:2018-12-20 Revised:2019-04-26 Online:2019-07-30 Published:2019-07-30
  • Contact: A-Lun GU


In December 2017, China officially announced the launch of the national carbon market, which will provide institutional guarantees for China’s carbon emissions peaking as early as possible and coordinating environmental issues. The industries covered by the national carbon market include energy intensive sectors such as electricity, steel, cement, chemicals, paper, and non-ferrous metals. The carbon market policy is bound to have certain impacts on their competitiveness. By constructing a partial equilibrium model, this paper quantitatively analyzes the impact of carbon market on the competitiveness of China’s steel industry from the aspects of price, output, trade and carbon leakage, and makes sensitivity analysis on key parameters affecting the model results, including emission reduction cost curve, quota allocation method and trade elasticity. The research results show that the carbon market has not much impact on the competitiveness of the steel industry, but more attention should be paid to the carbon leakage issue.

Key words: Carbon market, Steel sector, Sector competitiveness, Quota allocation method, Trade elasticity, Carbon leakage

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