Limiting Emissions and Trade: Some Basic Ideas
AbstractThe computable general equilibrium models used in the literature tend to be a bit of a black box. This paper provides some intuition behind what goes on in these black boxes by laying out a simple general equilibrium model and intuitively explaining what lies behind the demand for emissions. It traces out how a reduction in total emissions allowed in one country aspects the general equilibrium and the determinants of the extent of leakage in the model as well as more generally. It concludes with some implications for policy.
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Bibliographic InfoPaper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 16147.
Date of creation: Jul 2010
Date of revision:
Publication status: published as Kala Krishna. "Limiting Emissions and Trade: Some Basic Ideas," in Don Fullerton and Catherine Wolfram, editors, "The Design and Implementation of US Climate Policy" University of Chicago Press (2012)
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Postal: National Bureau of Economic Research, 1050 Massachusetts Avenue Cambridge, MA 02138, U.S.A.
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Other versions of this item:
- F18 - International Economics - - Trade - - - Trade and Environment
This paper has been announced in the following NEP Reports:
- NEP-ALL-2010-07-10 (All new papers)
- NEP-ENE-2010-07-10 (Energy Economics)
- NEP-ENV-2010-07-10 (Environmental Economics)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
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2009 Meeting Papers
1199, Society for Economic Dynamics.
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