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Assessing alternative solutions to carbon leakage

Alessandro Antimiani (), Valeria Costantini, Chiara Martini, Luca Salvatici () and Maria Cristina Tommasino

Energy Economics, 2013, vol. 36, issue C, 299-311

Abstract: A modified version of the computable general equilibrium GTAP-E model is developed in order to assess the economic and carbon emission effects of alternative trade policy measures aimed at reducing carbon leakage. We compare several unilateral policy measures implemented by countries subject to an emissions level cap. Results provide evidence of the scarce effectiveness of these policies in reducing the carbon leakage rate and, conversely, some of the trade measures that are discussed seem to be more consistent with the goal of protecting market shares of national firms in the domestic markets of abating countries. Assessing environmental and competitiveness outcomes jointly confirms that a global cooperative solution would be the most effective as well as an efficient policy option for reducing carbon leakage.

Keywords: Carbon leakage; Carbon border tax; GTAP-E model (search for similar items in EconPapers)
JEL-codes: Q43 Q47 Q54 (search for similar items in EconPapers)
Date: 2013
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (47)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:eneeco:v:36:y:2013:i:c:p:299-311

DOI: 10.1016/j.eneco.2012.08.042

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