A Numerical Investigation of the Potential for Negative Emissions Leakage
Niven Winchester and
Sebastian Rausch
American Economic Review, 2013, vol. 103, issue 3, 320-25
Abstract:
Emissions restrictions in one region may decrease emissions elsewhere (negative leakage), as increased demand for capital and labor to abate emissions in constrained regions may reduce output in unconstrained regions. We investigate leakage in computable general equilibrium (CGE) models under alternative fossil fuel supply elasticity values and factor mobility assumptions. We find that fossil fuel supply elasticities must be equal or close to infinity to generate net negative leakage. As empirical estimates for fossil fuel supply elasticities are less than 1, we conclude that leakage estimates from CGE models are unlikely to be negative.
JEL-codes: Q54 Q58 (search for similar items in EconPapers)
Date: 2013
Note: DOI: 10.1257/aer.103.3.320
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (16)
Downloads: (external link)
http://www.aeaweb.org/articles.php?doi=10.1257/aer.103.3.320 (application/pdf)
http://www.aeaweb.org/aer/ds/may2013/P2013_4374_ds.zip (application/zip)
http://www.aeaweb.org/aer/data/may2013/P2013_4374_app.pdf (application/pdf)
http://www.aeaweb.org/aer/data/may2013/P2013_4374_data.zip (application/zip)
Access to full text is restricted to AEA members and institutional subscribers.
Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
HTML/Text
Persistent link: https://EconPapers.repec.org/RePEc:aea:aecrev:v:103:y:2013:i:3:p:320-25
Ordering information: This journal article can be ordered from
https://www.aeaweb.org/journals/subscriptions
Access Statistics for this article
American Economic Review is currently edited by Esther Duflo
More articles in American Economic Review from American Economic Association Contact information at EDIRC.
Bibliographic data for series maintained by Michael P. Albert ().