Carbon leakage: pollution, trade or politics?

Gabriela Michalek and Reimund Schwarze

Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, 2015, vol. 17, issue 6, 1492 pages

Abstract: In recent years, carbon leakage has attracted widespread attention from both environmental researchers and a broader public. Despite its popularity, there has been some confusion around the concept of carbon leakage, resulting from very different and sometimes imprecise definitions of a phenomenon that can be calculated using different, outcome–relevant methods. The aim of the present article is to bring clarity to this research field, to classify available definitions and to offer specific recommendations for good practice. In particular, we discuss and compare different understandings of carbon leakage and the methodologies used to calculate them. Our analysis highlights crucial differences with respect to diverse research purposes and points out shortcomings and potential problems that may, in extreme cases, create policy-relevant grey areas. Copyright Springer Science+Business Media Dordrecht 2015

Keywords: Carbon leakage; Environmental policy; Emission transfers; Multi-regional input–output analysis (MRIO); Emissions embodied in bilateral trade (EEBT) (search for similar items in EconPapers)
Date: 2015
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Working Paper: Carbon Leakage: Pollution, Trade or Politics? (2014)
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DOI: 10.1007/s10668-014-9616-8

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