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Peter Kjær Kruse-Andersen @kruse-andersen.bsky.social · 12/09/2025

🚨Working Paper Alert We ask: can circular economy policies backfire? In a macroeconomic model, we show that circular economy policies (e.g., increased recycling) may backfire in the sense that they increase virgin natural resource use papers.ssrn.com/sol3/papers....

papers.ssrn.com

Is Recycling Wasted? Circular Economy and the Material Rebound Effect

We investigate how circular economy policies-such as increased recycling or reduced waste generation-affect primary (virgin) natural resource use at the macro l

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Peter Kjær Kruse-Andersen @kruse-andersen.bsky.social · 14/05/2025

Publication alert! 🚨 10 years in the making! Main takeaways: 💡 A stricter environmental policy unambiguously reduces economic growth 💡 But the effect is highly non-linear 💡 Economic growth barely affected by realistic environmental policy changes doi.org/10.1016/j.en...

doi.org

Redirecting

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Peter Kjær Kruse-Andersen @kruse-andersen.bsky.social · 16/01/2025

Den Grønne Trepart finansieres delvist ved at sælge 4 mio. CO2-kvoter, som skulle være annulleret Politikkerne er nødt til at anerkende, at det kommer med en omkostning for klimaet på ca. 4 mio. ton CO2 Debatindlæg med @andreaslundj.bsky.social i AltingetKlima www.altinget.dk/klima/artike...

altinget.dk

Økonomer: Salg af CO2-kvoter til at finansiere grøn trepart bryder med central prioritet

Salg af fire millioner CO2-kvoter til at finansiere treparten virker inkonsistent med det hidtidige fokus på lækage i klimapolitikken. Politikerne bør anerkende den sandsynlige lækageeffekt fremfor at...

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Peter Kjær Kruse-Andersen @kruse-andersen.bsky.social · 12/12/2024

Our numerical simulations show that our tax-subsidy scheme could provide a welfare gain of around 0.3 percent of national income if politicians have a strong aversion to carbon leakage End of 🧵 12/N

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Peter Kjær Kruse-Andersen @kruse-andersen.bsky.social · 12/12/2024

While the uniform carbon tax ensures a domestic emission reduction target, the other instruments depend on the politicians’ aversion to leakage With no aversion to leakage, only a uniform carbon tax is needed 11/N

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Peter Kjær Kruse-Andersen @kruse-andersen.bsky.social · 12/12/2024

(7) Tax on domestic production of fossil fuels Intuition: reducing domestic production increases net imports, thereby increasing the international price of fossil fuels and thereby decreasing foreign consumption 10/N

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Peter Kjær Kruse-Andersen @kruse-andersen.bsky.social · 12/12/2024

(6) Subsidy to green energy production Intuition: increasing domestic production reduces net imports, thereby reducing the international price of green energy and thereby increasing foreign consumption, resulting in lower fossil fuel use 9/N

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Peter Kjær Kruse-Andersen @kruse-andersen.bsky.social · 12/12/2024

(5) Tax on green energy consumption Intuition: increasing domestic production reduces net imports, thereby reducing the international price of green energy and thereby increasing foreign consumption, resulting in lower fossil fuel use 8/N

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Peter Kjær Kruse-Andersen @kruse-andersen.bsky.social · 12/12/2024

(4) Consumption taxes on all non-energy goods Intuition: reduction in domestic consumption reduces net imports, thereby reducing the international price of green energy and thereby increasing foreign consumption, resulting in lower fossil fuel use 7/N

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Peter Kjær Kruse-Andersen @kruse-andersen.bsky.social · 12/12/2024

(3) Location subsidies to all non-energy sectors Intuition: counteract leakage at the extensive intensive margin by reducing the profit loss from regulation 6/N

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Peter Kjær Kruse-Andersen @kruse-andersen.bsky.social · 12/12/2024

(2) Output subsidies to all non-energy sectors Intuition: counteract leakage at the intensive margin by increasing international competitiveness 5/N

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Peter Kjær Kruse-Andersen @kruse-andersen.bsky.social · 12/12/2024

(1) A uniform carbon tax on households and all non-energy sectors Intuition: equalize marginal abatement costs across sectors and ensures a domestic emissions target 4/N

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Peter Kjær Kruse-Andersen @kruse-andersen.bsky.social · 12/12/2024

Our general equilibrium model prescribes an intuitive tax-subsidy scheme with 7 elements… 3/N

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Peter Kjær Kruse-Andersen @kruse-andersen.bsky.social · 12/12/2024

As a novel feature, we distinguish between leakage at the extensive margin, where domestic firms relocate to foreign countries, and leakage at the intensive margin, where domestic firms lose world market shares 2/N

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Peter Kjær Kruse-Andersen @kruse-andersen.bsky.social · 12/12/2024

Excited to share this open access article, forthcoming in The Scandinavian Journal of Economics @scandjecon.bsky.social We design a cost-effective tax-subsidy scheme that reduces domestic carbon emissions while also addressing leakage *without* Border Carbon Adjustments 🧵 doi.org/10.1111/sjoe...

doi.org

Optimal unilateral climate policy with carbon leakage at the extensive and the intensive margins

We derive the optimal unilateral climate policy for an open economy with a domestic emissions target and aversion to carbon leakage, distinguishing between leakage at the extensive margin, where dome...

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Reposted by Peter Kjær Kruse-Andersen

Peter Kjær Kruse-Andersen @kruse-andersen.bsky.social · 10/12/2024

Det er svært at se, at Energiø Bornholm giver samfundsøkonomisk mening - selv hvis man medregne forsyningssikkerhed Det har jeg kommenteret på til @klimamonitor.bsky.social Jeg vil igen opfordre til, at man trækker stikket på Energiø Bornholm ...hurtigst muligt klimamonitor.dk/nyheder/art1....

klimamonitor.dk

Aktindsigt: Prestigeprojekt til 31 mia. kr. giver forsyningssikkerhed for 150 mio. kr.

I kølvandet på fiaskoen med udbuddet af havvind tilbyder Energiø Bornholm genoprejsning. Men notat viser, at forsyningssikkerheden er så minimal, at det 3 GW store energiprojekt efterlader stort under...

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Peter Kjær Kruse-Andersen @kruse-andersen.bsky.social · 10/12/2024

klimamonitor.dk

Aktindsigt: Prestigeprojekt til 31 mia. kr. giver forsyningssikkerhed for 150 mio. kr.

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