Estimating carbon leakage and the efficiency of border adjustments in general equilibrium — Does sectoral aggregation matter?
AbstractEstimates of the carbon leakage resulting from sub-global climate policies tend to be lower when using economy-wide general equilibrium models than what technology-specific and bottom-up models suggest. In order to test whether this difference is due to excessive sectoral aggregation, I exploit disaggregated data and estimate unobserved values to create a dataset with rich industrial sector detail. The bias caused by sectoral aggregation is estimated by calibrating a computable general equilibrium model to this dataset and comparing results with those generated from more aggregated data.
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Bibliographic InfoArticle provided by Elsevier in its journal Energy Economics.
Volume (Year): 34 (2012)
Issue (Month): S2 ()
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Web page: http://www.elsevier.com/locate/eneco
General equilibrium; CGE; Climate policy; Sectoral aggregation; Disaggregation; Aggregation bias; Carbon leakage; Border carbon adjustments;
Find related papers by JEL classification:
- D58 - Microeconomics - - General Equilibrium and Disequilibrium - - - Computable and Other Applied General Equilibrium Models
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