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Optimal containment and policy differentiation under unilateral climate policy

Csordàs, Stefan and Krysiak, Frank Christian. (2011) Optimal containment and policy differentiation under unilateral climate policy. Canadian journal of economics, Vol. 44. pp. 814-837.

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Official URL: http://edoc.unibas.ch/dok/A5841734

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Abstract

Without a broad international agreement, climate policy is less effective due to carbon leakage. We investigate whether this negative effect can be addressed by partially containing the policy’s effects to intermediate goods sectors, such as electricity or transportation services. We use a three-sector model to study a policy that taxes emissions caused by intermediate goods production while subsidizing the intermediate good. We characterize the optimal containment policy for combating carbon leakage and show that it complements the concept of policy differentiation.
Faculties and Departments:06 Faculty of Business and Economics > Departement Wirtschaftswissenschaften > Professuren Wirtschaftswissenschaften > Umweltökonomie (Krysiak)
UniBasel Contributors:Krysiak, Frank Christian and Csordàs, Stefan
Item Type:Article, refereed
Article Subtype:Research Article
Bibsysno:Link to catalogue
Publisher:Canadian Economics Association
ISSN:0008-4085
Note:Publication type according to Uni Basel Research Database: Journal article
Last Modified:14 Sep 2012 07:21
Deposited On:14 Sep 2012 07:10

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