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.
CitationCarbone, 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
- Q54 Climate; Natural Disasters; Global Warming
- Q58 Environmental Economics: Government Policy