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Global EnergyIssues, Potentials, and Policy Implications$
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Paul Ekins, Mike Bradshaw, and Jim Watson

Print publication date: 2015

Print ISBN-13: 9780198719526

Published to Oxford Scholarship Online: September 2015

DOI: 10.1093/acprof:oso/9780198719526.001.0001

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The implications of indirect emissions for climate and energy policy

The implications of indirect emissions for climate and energy policy

Chapter:
(p.92) 5 The implications of indirect emissions for climate and energy policy
Source:
Global Energy
Author(s):

Katy Roelich

John Barrett

Anne Owen

Publisher:
Oxford University Press
DOI:10.1093/acprof:oso/9780198719526.003.0006

This chapter discusses the implications for climate and energy policy of increasing global trade and a shift of industrialized country economic activity towards services. Industrialized countries increasingly rely on energy consumed and emissions created during production processes that occur outside their own territory (so-called indirect emissions). As a result, emissions are leaked from countries with binding emission reduction targets to those currently without, through trade. This calls into question the effectiveness of climate policy based on fragmented territorial action in the absence of a global agreement on emissions reduction or a global carbon price. This chapter presents an alternative approach to climate policy that more effectively addresses indirect emissions. It briefly describes consumption-based emissions accounting methods used to quantify indirect emissions, and discusses potential policy options for incorporating indirect emissions into climate and energy policy.

Keywords:   indirect emissions, carbon leakage, consumption-based emissions accounting, climate policy, energy policy

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