IDEAS home Printed from https://ideas.repec.org/
MyIDEAS: Login to save this paper or follow this series

Carbon Leakage: The Role of Sequential Policy Setting

  • Sikdar, Shiva
  • Lapan, Harvey E.

�We analyze non-cooperative environmental policy when the only strategic interaction between countries is through bilateral transboundary pollution, i.e., countries are�closed or small open economies. When countries set pollution taxes simultaneously,�there is no carbon leakage. However, in the sequential-move game, the leader sets its�pollution tax lower than the marginal damage from own pollution and lower than that�in the simultaneous-move game, while the follower sets its tax higher than that in the�simultaneous-move game. The only motive behind the leader's underregulation of own�pollution is to reduce the incidence of transboundary pollution from the follower, i.e.,�to reduce carbon leakage. Aggregate pollution is higher in the sequential-move game�than in the simultaneous-move game if pollution is a pure global public bad.

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

File URL: http://www.econ.iastate.edu/sites/default/files/publications/papers/p11312-2010-02-10.pdf
Download Restriction: no

File URL: http://journals.cambridge.org.proxy.lib.iastate.edu:2048/action/displayFulltext?type=1&pdftype=1&fid=8485343&jid=EDE&volumeId=17&issueId=01&aid=8485341
Download Restriction: no

Paper provided by Iowa State University, Department of Economics in its series Staff General Research Papers with number 31312.

as
in new window

Length:
Date of creation: 10 Feb 2010
Date of revision:
Publication status: Published in Environment and Development Economics, February 2012, vol. 17 no. 1, pp. 91-104
Handle: RePEc:isu:genres:31312
Contact details of provider: Postal: Iowa State University, Dept. of Economics, 260 Heady Hall, Ames, IA 50011-1070
Phone: +1 515.294.6741
Fax: +1 515.294.0221
Web page: http://www.econ.iastate.edu
Email:


More information through EDIRC

No references listed on IDEAS
You can help add them by filling out this form.

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

When requesting a correction, please mention this item's handle: RePEc:isu:genres:31312. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Stephanie Bridges)

The email address of this maintainer does not seem to be valid anymore. Please ask Stephanie Bridges to update the entry or send us the correct address

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.

This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.