Baylis, Kathy; Fullerton, Don; Karney, Daniel H. - In: Journal of the Association of Environmental and … 1 (2014) 1, pp. 51-51
Our analytical general equilibrium model solves for effects of a small increase in carbon tax on leakage—the increase in emissions elsewhere. Identical consumers buy two goods using income from endowments that are mobile between sectors. Usually an increase in one sector’s tax raises output...