Carbon Leakage under Incomplete Environmental Regulation: An Industry-Level Approach

Working paper

Carbon leakage is a major concern for policymakers involved with environmental initiatives such as the European Union’s emissions trading scheme and similar cap-and-trade proposals in the United States Australia and elsewhere. This paper provides a framework for understanding the drivers underlying carbon leakage at the level of an individual sector in which only a subset of firms is covered by such regulation. It provides simple formulae to estimate leakage rates using information on industr...

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Authors: Ritz, R

• Publication status: Published
• Peer review status: Reviewed (other)
• Publisher: Oxford Institute for Energy Studies Publisher's website
• Series: OIES paper
• Publication date: 2009-01-01
• Paper number: EV46
• ISBN: 9781901795950
• Language: English
• Keywords: EV 46; EV46; Free-Allocation; Abatement; cap and trade; Emissions Trading; Carbon Leakage; Carbon Tax; Market Structure; OIES; Cost Pass-through; Climate Change Regulations