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Cooperative and non-cooperative solutions to carbon leakage

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  • Alessandro Antimiani
  • Valeria Costantini
  • Chiara Martini
  • Luca Salvatici

Abstract

A modified version of the CGE GTAP-E model is developed for assessing the economic and carbon emissions effects related to alternative policy measures implemented with the aim of reducing carbon leakage. We explore a set of scenarios, comparing solutions where Annex I countries introduce exogenously or endogenously determined carbon border taxes in order to solve the carbon leakage problem unilaterally. Results provide evidence on the scarce effectiveness of carbon tariffs in reducing carbon leakage and enhancing economic competitiveness, while they have large negative welfare effects not only on the Non-Annex countries, but also on certain Annex I countries

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File URL: http://dipeco.uniroma3.it/public/WP%20136%20settembre%202011.pdf
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Bibliographic Info

Paper provided by Department of Economics - University Roma Tre in its series Departmental Working Papers of Economics - University 'Roma Tre' with number 0136.

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Date of creation: Sep 2011
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Handle: RePEc:rtr:wpaper:0136

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Keywords: Carbon Leakage; Carbon Border Tax; GTAP-E model;

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