Linking Numerical and Analytical Models of Carbon Leakage
- (pp. 326-31)
AbstractI 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.
Citation2013. "Linking Numerical and Analytical Models of Carbon Leakage." American Economic Review, 103(3): 326-31. DOI: 10.1257/aer.103.3.326
- Q54 Climate; Natural Disasters; Global Warming
- Q58 Environmental Economics: Government Policy