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Carbon Emission Leakages: A General Equilibrium View

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  • Jean-Marc Burniaux
  • Joaquim Oliveira Martins

Abstract

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 ...

Suggested Citation

  • Jean-Marc Burniaux & Joaquim Oliveira Martins, 2000. "Carbon Emission Leakages: A General Equilibrium View," OECD Economics Department Working Papers 242, OECD Publishing.
  • Handle: RePEc:oec:ecoaaa:242-en
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    File URL: http://dx.doi.org/10.1787/410535403555
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    Keywords

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

    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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