Challenges in the Measurement of Leakage Risk
AbstractConcerns about emissions leakage, i.e., the increase in emissions in foreign jurisdictions induced by a domestic emissions regulation, loom large in debates about unilateral climate change policy. Correctly identifying the kinds of economic activities most at risk of carbon leakage is a critical first step in the design of effective leakage mitigation. We briefly summarize current approaches to assessing leakage risk and highlight a sizable gap between academic research and real-world policy implementation. An emerging research agenda that aims to close this gap is discussed.
CitationFowlie, Meredith, and Mar Reguant. 2018. "Challenges in the Measurement of Leakage Risk." AEA Papers and Proceedings, 108: 124-29. DOI: 10.1257/pandp.20181087
- Q53 Air Pollution; Water Pollution; Noise; Hazardous Waste; Solid Waste; Recycling
- Q54 Climate; Natural Disasters and Their Management; Global Warming
- Q58 Environmental Economics: Government Policy