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Carbon Leakage: Pollution, Trade or Politics?

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  • Gabriela Michalek

    (European University Viadrina)

  • Reimund Schwarze

    (Europa University Viadrina and Helmholtz Centre for Environmental Research (UFZ))

Abstract

In recent years, carbon leakage has attracted widespread attention from both environmental researchers and a broader public. Despite its popularity, there has been some confusion around the concept of carbon leakage, resulting from very different and sometimes imprecise definitions of a phenomenon that can be calculated using different, outcome–relevant methods. The aim of the present article is to bring clarity to this research field, to classify available definitions and to offer specific recommendations for good practice. In particular, we discuss and compare different understandings of carbon leakage and the methodologies used to calculate them. Our analysis highlights crucial differences with respect to diverse research purposes and points out shortcomings and potential problems that may, in extreme cases, create policy-relevant grey areas. Copyright Springer Science+Business Media Dordrecht 2015
(This abstract was borrowed from another version of this item.)

Suggested Citation

  • Gabriela Michalek & Reimund Schwarze, 2014. "Carbon Leakage: Pollution, Trade or Politics?," Discussion Paper Series RECAP15 12, RECAP15, European University Viadrina, Frankfurt (Oder).
    • Handle: RePEc:euv:dpaper:12
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    2. Michalek, Gabriela & Meran, Georg & Schwarze, Reimund & Yildiz, Özgür, 2016. "Nudging as a new "soft" policy tool: An assessment of the definitional scope of nudges, practical implementation possibilities and their effectiveness," Economics Discussion Papers 2016-18, Kiel Institute for the World Economy (IfW Kiel).
    3. Ernst, Anne & Hinterlang, Natascha & Mahle, Alexander & Stähler, Nikolai, 2023. "Carbon pricing, border adjustment and climate clubs: Options for international cooperation," Journal of International Economics, Elsevier, vol. 144(C).
    4. Fan, Xiaojia & Wu, Sanmang & Li, Shantong, 2019. "Spatial-temporal analysis of carbon emissions embodied in interprovincial trade and optimization strategies: A case study of Hebei, China," Energy, Elsevier, vol. 185(C), pages 1235-1249.
    5. Gabriela Michalek & Georg Meran & Reimund Schwarze & Özgür Yildiz, 2015. "Nudging as a new 'soft' tool in environmental policy. An analysis based on insights from cognitive and social psychology," Discussion Paper Series RECAP15 21, RECAP15, European University Viadrina, Frankfurt (Oder).
    6. Ernst, Anne & Hinterlang, Natascha & Mahle, Alexander & Stähler, Nikolai, 2022. "Carbon pricing, border adjustment and climate clubs: An assessment with EMuSe," Discussion Papers 25/2022, Deutsche Bundesbank.

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    More about this item

    Keywords

    Carbon leakage; Environmental leakage; Environmental policy; Emission transfers; MRIO; EEBT;
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