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Climate policy and competitiveness: Policy guidance and quantitative evidence

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  • Jared C. Carbone

    (Division of Economics and Business, Colorado School of Mines)

  • Nicholas Rivers

    (University of Ottawa)

Abstract

When considering adoption of a domestic climate change policy, politicians and the public frequently refer to concerns about competitiveness. Competitiveness in this context does not have a precise economic definition. In this article, we discuss possible ways to anchor the concept of competitiveness in economic analysis. This framework then serves as the basis of a systematic survey the literature on the quantitative impacts of unilateral climate change policy derived from the results of computable general equilibrium (or CGE) models. We provide empirical estimates of the magnitude of competitiveness effects that might be associated with the adoption of unilateral climate change policies and a meta-analysis of the key sensitivities displayed by the models as a guide to future research.

Suggested Citation

  • Jared C. Carbone & Nicholas Rivers, 2014. "Climate policy and competitiveness: Policy guidance and quantitative evidence," Working Papers 2014-05, Colorado School of Mines, Division of Economics and Business.
  • Handle: RePEc:mns:wpaper:wp201405
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    Cited by:

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    2. Harrison Fell & Peter Maniloff, 2015. "Beneficial Leakage: The Effect of the Regional Greenhouse Gas Initiative on Aggregate Emissions," Working Papers 2015-06, Colorado School of Mines, Division of Economics and Business.
    3. Fell, Harrison & Maniloff, Peter, 2018. "Leakage in regional environmental policy: The case of the regional greenhouse gas initiative," Journal of Environmental Economics and Management, Elsevier, vol. 87(C), pages 1-23.

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    More about this item

    Keywords

    competitiveness; leakage; policy; carbon tax; climate change; computable general equilibrium;
    All these keywords.

    JEL classification:

    • C68 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Computable General Equilibrium Models
    • Q52 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Pollution Control Adoption and Costs; Distributional Effects; Employment Effects
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming

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