Challenges in the Measurement of Leakage Risk

Meredith Fowlie and Mar Reguant

AEA Papers and Proceedings, 2018, vol. 108, 124-29

Abstract: Concerns about emissions leakage, i.e., the increase in emissions in foreign jurisdictions induced by a domestic emissions regulation, loom large in debates about unilateral climate change policy. Correctly identifying the kinds of economic activities most at risk of carbon leakage is a critical first step in the design of effective leakage mitigation. We briefly summarize current approaches to assessing leakage risk and highlight a sizable gap between academic research and real-world policy implementation. An emerging research agenda that aims to close this gap is discussed.

JEL-codes: Q53 Q54 Q58 (search for similar items in EconPapers)
Date: 2018
Note: DOI: 10.1257/pandp.20181087
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Citations: View citations in EconPapers (27)

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