Optimal containment and policy differentiation under unilateral climate policy

Stefan Csordas (stefan.csordas@unctad.org) and Frank Krysiak (frank.krysiak@unibas.ch)

Canadian Journal of Economics, 2011, vol. 44, issue 3, 814-837

Abstract: Without a broad international agreement, climate policy is less effective, owing to carbon leakage. We investigate whether this negative effect can be addressed by partially containing the policy's effects to intermediate goods sectors, such as electricity or transportation services. We use a three-sector model to study a policy that taxes emissions caused by intermediate goods production while subsidizing the intermediate good. We characterize the optimal containment policy for combating carbon leakage and show that it complements the concept of policy differentiation.

JEL-codes: H23 Q58 (search for similar items in EconPapers)
Date: 2011
References: Add references at CitEc
Citations:

Downloads: (external link)
https://doi.org/10.1111/j.1540-5982.2011.01656.x (text/html)
access restricted to 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:cje:issued:v:44:y:2011:i:3:p:814-837

Ordering information: This journal article can be ordered from
https://www.economic ... ionen/membership.php
office@economics.ca

Access Statistics for this article

Canadian Journal of Economics is currently edited by Zhiqi Chen

More articles in Canadian Journal of Economics from Canadian Economics Association Canadian Economics Association Prof. Werrner Antweiler, Treasurer UBC Sauder School of Business 2053 Main Mall Vancouver, BC, V6T 1Z2. Contact information at EDIRC.
Bibliographic data for series maintained by Prof. Werner Antweiler (werner.antweiler@ubc.ca).