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Assessing alternative solutions to carbon leakage

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Author Info

  • Antimiani, Alessandro
  • Costantini, Valeria
  • Martini, Chiara
  • Salvatici, Luca
  • Tommasino, Maria Cristina

Abstract

A modified version of the computable general equilibrium GTAP-E model is developed in order to assess the economic and carbon emission effects of alternative trade policy measures aimed at reducing carbon leakage. We compare several unilateral policy measures implemented by countries subject to an emissions level cap. Results provide evidence of the scarce effectiveness of these policies in reducing the carbon leakage rate and, conversely, some of the trade measures that are discussed seem to be more consistent with the goal of protecting market shares of national firms in the domestic markets of abating countries. Assessing environmental and competitiveness outcomes jointly confirms that a global cooperative solution would be the most effective as well as an efficient policy option for reducing carbon leakage.

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File URL: http://www.sciencedirect.com/science/article/pii/S0140988312002125
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Bibliographic Info

Article provided by Elsevier in its journal Energy Economics.

Volume (Year): 36 (2013)
Issue (Month): C ()
Pages: 299-311

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Handle: RePEc:eee:eneeco:v:36:y:2013:i:c:p:299-311

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Web page: http://www.elsevier.com/locate/eneco

Related research

Keywords: Carbon leakage; Carbon border tax; GTAP-E model;

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Cited by:
  1. Valeria Costantini & Alessio D'Amato & Chiara Martini & Maria Cristina Tommasino & Edilio Valentini & Mariangela Zoli, 2011. "Taxing international emissions trading," Departmental Working Papers of Economics - University 'Roma Tre' 0143, Department of Economics - University Roma Tre.
  2. López, Luis Antonio & Arce, Guadalupe & Zafrilla, Jorge Enrique, 2013. "Parcelling virtual carbon in the pollution haven hypothesis," Energy Economics, Elsevier, vol. 39(C), pages 177-186.

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