Conclusion: Europes Lessons from Carbon-Energy Taxation

In this chapter we provide an overview and interpretation of findings presented in this volume, while placing them in the context of the wider climate policy debate. We revisit the competitiveness issue and consider the findings presented in this book within the framework of the Porter hypothesis and Leibenstein's concept of Xefficiency, both of which have been quoted in support of more vigorous energy and climate policy. Carbon leakage, which refers to the displacement of emissions to noncarbon tax countries and regions, is a prominent concern in relation to specific industrial sectors and we examine the leakage rates identified here against the broader patterns of development in international trade and development, with particular attention directed towards developments in China and other emerging industrialized countries. The obvious challenge is to identify a formula that enables control while at the same time allowing for transformation of the global energy systems and continued economic growth, in particular in developing countries.