Climate effects of unilateral carbon policies are undermined by carbon leakage. To counteract leakage and increase global cost-effectiveness carbon tariffs can be imposed on the emissions embodied in imports from non-regulating regions. We present a theoretical analysis on the economic...

Emission leakage could potentially undermine the effectiveness of unilateral climate policies. Significant emission transfers from developing countries to developed countries in the form of emissions embodied in trade have been interpreted as an indication of such leakage. To reduce leakage and...

Climate effects of unilateral carbon policies are undermined by carbon leakage. To counteract leakage and increase global cost-effectiveness carbon tariffs can be imposed on the emissions embodied in imports from non-regulating regions. We present a theoretical analysis on the economic...

Has the Kyoto Protocol induced carbon leakage? We conduct the first empirical ex post evaluation of the protocol. We derive a theoretical gravity equation for the carbon dioxide content of trade, which accounts for intermediate inputs, both domestic and imported. The structure of our new panel...

Optimal choices of border tax adjustments (BTA) – tariffs or subsidies on imports and exports – are derived for a coalition of countries working cooperatively to abate greenhouse gas emissions, under an exogenous emissions reduction target. Under a domestic target, the optimal BTA is...

We develop a two-country (North and South), two-good, general equilibrium model of international trade in goods and explore the effects of domestic and international emission trading under free trade in goods. Whereas domestic emission trading in North may result in carbon leakage by expanding...

In this study CO2 emissions embodied in Austrian international trade are quantified employing a 66-region input output model of multidirectional trade. We find that Austria’s final demand CO2 responsibilities on a global scale are 38% higher than conventional statistics report (110 Mt-CO2...

This study quantifies the CO2 emissions embodied in Austrian exports and imports, using a two region-input output approach (Austria and the rest of the world). The approach considers differences in production technologies between Austria and the rest of the world, concerning the CO2 coefficients...

In this paper, analysis is presented relating to the impact of border tax adjustments for climate policy on the international competitiveness of energy-intensive industries, and the related problem of carbon leakage. While many of the economic and legal issues are not particularly new, climate...

We show how leakage differs, depending on the biofuel policy and market conditions. Carbon leakage is shown to have two components: a market leakage effect and an emissions savings effect. We also distinguish domestic and international leakage and show how omitting the former like the IPCC does...