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Assessing alternative solutions to carbon leakage

Author

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  • Antimiani, Alessandro
  • Costantini, Valeria
  • Martini, Chiara
  • Salvatici, Luca
  • Tommasino, Maria Cristina

Abstract

A modified version of the computable general equilibrium GTAP-E model is developed in order to assess the economic and carbon emission effects of alternative trade policy measures aimed at reducing carbon leakage. We compare several unilateral policy measures implemented by countries subject to an emissions level cap. Results provide evidence of the scarce effectiveness of these policies in reducing the carbon leakage rate and, conversely, some of the trade measures that are discussed seem to be more consistent with the goal of protecting market shares of national firms in the domestic markets of abating countries. Assessing environmental and competitiveness outcomes jointly confirms that a global cooperative solution would be the most effective as well as an efficient policy option for reducing carbon leakage.

Suggested Citation

  • Antimiani, Alessandro & Costantini, Valeria & Martini, Chiara & Salvatici, Luca & Tommasino, Maria Cristina, 2013. "Assessing alternative solutions to carbon leakage," Energy Economics, Elsevier, vol. 36(C), pages 299-311.
    • Handle: RePEc:eee:eneeco:v:36:y:2013:i:c:p:299-311
    DOI: 10.1016/j.eneco.2012.08.042
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    More about this item

    Keywords

    Carbon leakage; Carbon border tax; GTAP-E model;
    All these keywords.

    JEL classification:

    • Q43 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy and the Macroeconomy
    • Q47 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy Forecasting
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming

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