Carbon Leakage Along with the Green Paradox Against Carbon Abatement? A Review Based on Carbon Tax

Akkaya Sahin () and Bakkal Ufuk ()
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Akkaya Sahin: Istanbul University, Faculty of Economics, Department of Public Finance, Beyazit/Fatih, 34452Istanbul
Bakkal Ufuk: Istanbul University, Faculty of Economics, Department of Public Finance, Beyazit/Fatih, 34452Istanbul

Folia Oeconomica Stetinensia, 2020, vol. 20, issue 1, 25-44

Abstract: Research background: Insufficient global cooperation in carbon pricing against global warming has the risk of global carbon emissions rise because of carbon leakage. The effect of a carbon tax on the present supply of fossil fuels is also valuable in regard to global carbon emissions.Purpose: The purpose of this study is to gain more insights into the effects of carbon leakage along with the green paradox on global carbon emissions by reviewing the relevant literature.Research methodology: We provide the problem linked to carbon leakage and the green paradox in the introduction. Then, the effects of carbon leakage and the green paradox on global carbon emissions are elaborated separately. Finally the mutual effects of carbon leakage and the green paradox are reviewed comprehensively.Results: It is seen that various factors like interest rates, fossil fuel extraction costs, the fossil fuel reserves to be discovered in the future and carbon tax incidence are equally important determinants in regard to global carbon emissions.Novelty: This study provides an insight into the mutual effects of carbon leakage and the green paradox on global carbon emissions by reviewing the primary literature in the field.

Keywords: Global warming; carbon tax; carbon leakage; green paradox (search for similar items in EconPapers)
JEL-codes: Q54 Q56 Q58 Q59 (search for similar items in EconPapers)
Date: 2020
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Persistent link: https://EconPapers.repec.org/RePEc:vrs:foeste:v:20:y:2020:i:1:p:25-44:n:2

DOI: 10.2478/foli-2020-0002

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