Baylis, Kathy; Fullerton, Don; Karney, Daniel H. - In: American Economic Review 103 (2013) 3, pp. 332-37
We extend the model of Fullerton, Karney, and Baylis (2012) to explore cost-effectiveness of unilateral climate policy in the presence of leakage. We ignore the welfare gain from reducing greenhouse gas emissions, and focus on the welfare cost of the emissions tax or permit scheme. Whereas that...