Work

Greenhouse-Gas Emission Controls and International Carbon Leakage through Trade Liberalization

Year: 2008

Type: preprint

Abstract: ABSTRACT. This paper studies greenhouse-gas (GHG) emission controls in the presence of carbon leakage through international firm relocation. The Kyoto Protocol requires developed countries to reduce GHG emissions by a certain amount. Comparing emission quotas with emission taxes, we show that taxes coupled with lower trade costs facilitate more firm relocations?than quotas do, causing more international carbon leakage. Thus, if a country is concerned about global emissions, emission quotas would be adopted?to mitigate the carbon leakage. Firm relocation entails a trade-off between trade liberalization and emission regulations. Emission regulations may be hampered by trade liberalization, and vice versa.

Source: RePEc: Research Papers in Economics

Authors: Jota Ishikawa, Toshihiro Okubo

Institutions: Hitotsubashi University, Research Institute of Economy, Trade and Industry, Keio University

Language: English

Topic: Climate Change Policy and Economics

Subfield: Economics and Econometrics

Field: Economics, Econometrics and Finance

Domain: Social Sciences

SDG: Climate action

Open Access status: green

OpenAlex ID: W3121786149

Cites:

Cited by: 12

Related to: 10