EU enlargement and environmental policy



gas industry. Carbon leakage rates mimic the effects of carbon abatement policies on energy
intensive production (Table 9). Carbon leakage is the relocation of the energy intensive
industries or the increase of imports of energy intensive products. The calculations show
leakage rates within the range found in the literature. Carbon trading lessens the magnitude of
carbon leakage.

Table 7 Impacts of the environmental policies in the energy intensive sector (in %)

Region

NO-LIB

DOMESTIC

LIB

DOMESTIC

aNNEX

GLOBaL

aNNEX

GLOBaL

CEa

4.01

-5.83

-2.07

284

-8.04

-4.04

EUR

-1.26

0.30

0.66

-1.20

0.44

0.79

Table 8 Energy intensive trade with trade liberalization between EU and CEEC (in %)

Region                NO-LIB                       LIB

DOMESTIC ANNEX DOMESTIC ANNEX

EUR

CEA

EUR

CEA

EUR

CEA

EUR

CEA

CEA

-20.91

-32.46

5.93

-7.69

FSU

-10.23

23.00

-56.59

-10.17

18.44

22.43

-36.74

-39.78

EUR

-2.06

-0.94

-1.36

0.81

RAB

-32.95

-8.09

-22.52

1.16

-10.93

-7.89

5.83

0.36

ROW

-18.88

11.20

-16.93

0.71

7.68

11.37

13.34

7.48

Table 9 Carbon leakage (in %)

Leakage rates

NO-LIB

DOMESTIC     ANNEX

LIB

DOMESTIC

ANNEX

19.91             15.12

19.98

15.23

20



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