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Climate policy and competitiveness: Policy guidance and quantitative evidence

Jared Carbone () and Nicholas Rivers

No 2014-05, Working Papers from Colorado School of Mines, Division of Economics and Business

Abstract: When considering adoption of a domestic climate change policy, politicians and the public frequently refer to concerns about competitiveness. Competitiveness in this context does not have a precise economic definition. In this article, we discuss possible ways to anchor the concept of competitiveness in economic analysis. This framework then serves as the basis of a systematic survey the literature on the quantitative impacts of unilateral climate change policy derived from the results of computable general equilibrium (or CGE) models. We provide empirical estimates of the magnitude of competitiveness effects that might be associated with the adoption of unilateral climate change policies and a meta-analysis of the key sensitivities displayed by the models as a guide to future research.

Keywords: competitiveness; leakage; policy; carbon tax; climate change; computable general equilibrium (search for similar items in EconPapers)
JEL-codes: C68 Q52 Q54 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-agr, nep-cmp, nep-ene, nep-env and nep-ger
Date: 2014-08
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http://econbus-papers.mines.edu/working-papers/wp201405.pdf First version, 2014 (application/pdf)

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