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Cooperative and non-cooperative solutions to carbon leakage

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

No 136, Departmental Working Papers of Economics - University 'Roma Tre' from Department of Economics - University Roma Tre

Abstract: A modified version of the CGE GTAP-E model is developed for assessing the economic and carbon emissions effects related to alternative policy measures implemented with the aim of reducing carbon leakage. We explore a set of scenarios, comparing solutions where Annex I countries introduce exogenously or endogenously determined carbon border taxes in order to solve the carbon leakage problem unilaterally. Results provide evidence on the scarce effectiveness of carbon tariffs in reducing carbon leakage and enhancing economic competitiveness, while they have large negative welfare effects not only on the Non-Annex countries, but also on certain Annex I countries

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)
New Economics Papers: this item is included in nep-ene and nep-env
Date: 2011-09
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