Subglobal Climate Agreements and Energy-Intensive Activities: Is there a Carbon Haven for Copper?
Thomas F. Rutherford and
John Tilton ()
Working Papers from Massachusetts Institute of Technology, Center for Energy and Environmental Policy Research
Subglobal climate policies induce changes in international competitiveness and favor a relocation of carbon-emitting activities. We argue that many energy-intensive activities are also capital-intensive, so that carbon policies could affect rents rather than abatement or location. Taking copper as an example, we formulate a plant-level spatial equilibrium model of the industry, and we estimate a set of elasticities to calibrate the behavioral parameters of the model. Given 2007 market conditions, Monte Carlo simulations suggest that a $50/tCO2 tax in industrialized countries induces emissions reductions of less than one percent in the copper industry, with a mean emission leakage rate of 25%. Our results conform with empirical findings on the pollution haven effect but challenge projections from computable general equilibrium models.
New Economics Papers: this item is included in nep-ene and nep-env
References: Add references at CitEc
Citations: Track citations by RSS feed
Downloads: (external link)
Our link check indicates that this URL is bad, the error code is: 500 Can't connect to tisiphone.mit.edu:80 (No such host is known. )
Journal Article: Subglobal Climate Agreements and Energy-intensive Activities: An Evaluation of Carbon Leakage in the Copper Industry (2013)
Working Paper: Subglobal climate agreements and energy-intensive activities: An evaluation of carbon leakage in the copper industry (2013)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:mee:wpaper:1103
Access Statistics for this paper
More papers in Working Papers from Massachusetts Institute of Technology, Center for Energy and Environmental Policy Research Contact information at EDIRC.
Bibliographic data for series maintained by Sharmila Ganguly ().