Linking Numerical and Analytical Models of Carbon Leakage

Jared Carbone

American Economic Review, 2013, vol. 103, issue 3, 326-31

Abstract: I use an applied general equilibrium model to quantify the influence of a new, theoretical channel for carbon leakage effects, as identified by Fullerton, Karney and Baylis (2012). I first produce parameterizations of the model that generate a close correspondence with the theory, isolating the quantitative effect of this channel. I then produce parameterizations that allow for an examination of net leakage rates in a model with a more comprehensive set of leakage channels. I find that the new channel exerts a negative influence on net leakage rates but that positive forces of leakage dominate in the comprehensive assessment.

JEL-codes: Q54 Q58 (search for similar items in EconPapers)
Date: 2013
Note: DOI: 10.1257/aer.103.3.326
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Citations: View citations in EconPapers (23)

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