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Addressing the concerns about carbon leakage in the implementation of carbon pricing policies: a focus on the issue of competitiveness

Author

Listed:
  • Florian Rey

    (State Secretariat for Economic Affairs (SECO) Americas Unit
    Finance Department of the Canton of Fribourg)

  • Thierry Madiès

    (University of Fribourg
    Swiss Distant Learning University)

Abstract

This article investigates whether the implementation of asymmetric carbon pricing policies leads to carbon leakage. We first present the theoretical mechanisms behind carbon leakage. Secondly, we conduct a review of the existing empirical results of carbon leakage. We focus on the competitiveness channel and therefore rely on papers analysing the effects of asymmetric carbon prices on both trade and investment flows. Lastly, we discuss solutions to reduce carbon leakage, so that acceptability towards ambitious carbon pricing policies can be maximized.

Suggested Citation

  • Florian Rey & Thierry Madiès, 2021. "Addressing the concerns about carbon leakage in the implementation of carbon pricing policies: a focus on the issue of competitiveness," Economia e Politica Industriale: Journal of Industrial and Business Economics, Springer;Associazione Amici di Economia e Politica Industriale, vol. 48(1), pages 53-75, March.
    • Handle: RePEc:spr:epolin:v:48:y:2021:i:1:d:10.1007_s40812-020-00157-8
    DOI: 10.1007/s40812-020-00157-8
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    References listed on IDEAS

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    Cited by:

    1. Ali Salmasnia & Ali Talesh-Kazemi & Mohammad Reza Maleki, 2022. "Joint optimization of inventory planning, maintenance policy and pricing for perishable complementary products by considering the product freshness and technology level," Economia e Politica Industriale: Journal of Industrial and Business Economics, Springer;Associazione Amici di Economia e Politica Industriale, vol. 49(4), pages 713-746, December.

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    More about this item

    Keywords

    Carbon leakage; Competitiveness; Climate policy;
    All these keywords.

    JEL classification:

    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming
    • Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy

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