A modified version of the CGE GTAP-E model is used to assess economic and carbon emission effects related to alternative policy measures implemented to reduce carbon leakage. We explore a set of scenarios and compare solutions where Kyoto Annex I countries introduce carbon border taxes based on domestic carbon tax in order to solve the carbon leakage problem unilaterally and solutions where carbon border taxes are determined according to specific objectives. Results provide evidence of the scarce effectiveness of trade measures in reducing carbon leakage and enhancing economic competitiveness and the strong negative welfare effects they have not only on non-Annex countries but also on some Annex I countries.
|Title of host publication||The Dynamics of Environmental and Economic Systems: Innovation, Environmental Policy and Competitiveness|
|Publication status||Published - 1 Jun 2013|
All Science Journal Classification (ASJC) codes
- Economics, Econometrics and Finance(all)
- Business, Management and Accounting(all)
Antimiani, A., Costantini, V., Martini, C., Salvatici, L., & Tommasino, M. C. (2013). Carbon leakage and trade adjustment policies. In The Dynamics of Environmental and Economic Systems: Innovation, Environmental Policy and Competitiveness Springer Netherlands. https://doi.org/10.1007/978-94-007-5089-0_2