Weisbach, David A.; Kortum, Samuel; Wang, Michael Y.; … - 2022
places with few or no emissions restrictions, an effect known as leakage. Relocated industries would continue to pollute but … would be operating in a less desirable location. We consider solutions to the leakage problem in a simple setting where one … tax rate on production lower due to leakage; (3) taxing only production (on the demand side), however, would be …