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Di Maria, C. 
ORCID: https://orcid.org/0000-0002-3048-0506, Michielsen, T. O. and van der Werf, E.
(2013)
Carbon Leakage.
In:
Resources.
Elsevier, pp. 255-259.
ISBN 9780080964522
Abstract
Because of the difficulties in forming international climate agreements, most climate policies have been the result of unilateral action. There is widespread concern that unilateral policies are ineffective because emission reductions in abating countries are offset by increases in nonabating countries. The authors summarize the channels through which such carbon leakage can occur, review estimates of the magnitude of the problem, and list policies that have been suggested to mitigate carbon leakage. The most prominent cause of carbon leakage is the 'energy market channel': unilateral policies to reduce emissions from fossil fuels decrease the world market price of fossil fuels, encouraging their use in nonabating countries. Terms of trade effects, indicating a loss of competitiveness in energy-intensive sectors in abating countries, are less important. Numerical estimates of the carbon leakage rate - the fraction of emission reductions in abating countries that is undone by increases elsewhere - are mostly between 2% and 40%; however, outliers exist in both directions. Policies to mitigate carbon leakage, such as border tax adjustments, are likely ineffective.
| Item Type: | Book Section |
|---|---|
| Additional Information: | Publisher Copyright: © 2013 Elsevier Inc. All rights reserved. |
| Uncontrolled Keywords: | border tax adjustment,climate change,competitiveness,computable general equilibrium,fossil fuels,international trade,unilateral climate policy,economics, econometrics and finance(all),business, management and accounting(all),sdg 13 - climate action ,/dk/atira/pure/subjectarea/asjc/2000 |
| Faculty \ School: | Faculty of Social Sciences > School of Economics |
| Related URLs: | |
| Depositing User: | LivePure Connector |
| Date Deposited: | 12 Sep 2022 10:32 |
| Last Modified: | 20 Mar 2023 09:42 |
| URI: | https://ueaeprints.uea.ac.uk/id/eprint/88123 |
| DOI: | 10.1016/B978-0-12-375067-9.00166-2 |
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