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• Joaquim Oliveira Martins

In December 1997, a number of countries - referred to as the Annex 1 countries - signed the Kyoto Protocol under which they agreed to ceilings on their emissions of greenhouse gases (GHGs). Such unilateral action by a group of countries has often been criticised on the grounds that it could be undermined by the existence of so-called “carbon leakages”. Carbon leakage refers to the possible rise of GHG emissions in countries that do not participate in a carbon abatement coalition. This paper provides a discussion of the key mechanisms and factors underlying the size of carbon leakages. To this aim, we use a two-region, two-final goods simplified CGE framework, incorporating three types of fossil fuels (coal, oil and low-carbon energy), international trade and capital mobility. This framework was designed to make extensive, multidimensional sensitivity analysis tractable. Indeed, a wide range of alternative assumptions and parameterisations would have been difficult or even ...

En Décembre 1997, les pays dits “de l’Annexe 1” signaient le Protocole de Kyoto par lequel ils s’engageaient à limiter leurs émissions de gaz à effet de serre (GES). On a souvent mis en doute l’efficacité de ce type d’action unilatérale par un groupe de pays à cause de l’existence possible de ce que l’on peut appeler des « fuites de carbone ». Ces fuites correspondent à l’augmentation induite éventuelle des émissions de GES dans les pays qui ne participent pas à la coalition engagée dans l’effort de réduction des émissions. On trouvera dans ce document une discussion des facteurs et des mécanismes qui déterminent la taille des « fuites de carbone ». Cette analyse utilise un modèle d’Equilibre Général Appliqué (EGA) simplifié comprenant deux régions, deux biens de consommation, trois types d’énergie fossile (charbon, pétrole et une énergie à faible contenu en carbone), du commerce international et de la mobilité interrégionale du capital. Il s’agit avec ce type de modèle de pouvoir ...

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Paper provided by OECD Economics Department in its series OECD Economics Department Working Papers with number 242.

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Date of creation: 10 May 2000
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Handle: RePEc:oec:ecoaaa:242-en

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Keywords: computable and other applied general equilibrium models exhaustible resources and economic development energy and macroeconomy modèle d'équilibre général appliqué et calculable ressources non renouvelables et développement économique énergie et macroéconomie

Find related papers by JEL classification:
D58 - Microeconomics - - General Equilibrium and Disequilibrium - - - Computable and Other Applied General Equilibrium Models
Q32 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - Exhaustible Resources and Economic Development
Q43 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy and the Macroeconomy

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1. Maria, Corrado di & Werf, Edwin van der, 2005. "Carbon leakage revisited: unilateral climate policy with directed technical change," Discussion Paper 68, Tilburg University, Center for Economic Research. [Downloadable!]
   Other versions:
   • Corrado Di Maria & Edwin van der Werf, 2006. "Carbon Leakage Revisited: Unilateral Climate Policy with Directed Technical Change," Working Papers 2006.94, Fondazione Eni Enrico Mattei. [Downloadable!]
   • Corrado Maria & Edwin Werf, 2008. "Carbon leakage revisited: unilateral climate policy with directed technical change," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 39(2), pages 55-74, February. [Downloadable!] (restricted)
2. Reyer Gerlagh & Onno Kuik, 2007. "Carbon Leakage with International Technology Spillovers," Working Papers 2007.33, Fondazione Eni Enrico Mattei. [Downloadable!]

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This page was last updated on 2008-11-17.