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American Economic Review: Vol. 103 No. 3 (May 2013)

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Linking Numerical and Analytical Models of Carbon Leakage

Article Citation

Carbone, Jared C. 2013. "Linking Numerical and Analytical Models of Carbon Leakage." American Economic Review, 103(3): 326-31.

DOI: 10.1257/aer.103.3.326

Abstract

I use an applied general equilibrium model to quantify the influence of a new, theoretical channel for carbon leakage effects, as identified by Fullerton, Karney and Baylis (2012). I first produce parameterizations of the model that generate a close correspondence with the theory, isolating the quantitative effect of this channel. I then produce parameterizations that allow for an examination of net leakage rates in a model with a more comprehensive set of leakage channels. I find that the new channel exerts a negative influence on net leakage rates but that positive forces of leakage dominate in the comprehensive assessment.

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Authors

Carbone, Jared C. (U Calgary)

JEL Classifications

Q54: Climate; Natural Disasters; Global Warming
Q58: Environmental Economics: Government Policy


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