Carbon leakage in a small open economy: The importance of international climate policies
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Carbon leakage in a small open economy : The importance of international climate policies. / Beck, Ulrik R.; Kruse-Andersen, Peter K.; Stewart, Louis B.
In: Energy Economics, Vol. 117, 106447, 01.2023.Research output: Contribution to journal › Journal article › Research › peer-review
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TY - JOUR
T1 - Carbon leakage in a small open economy
T2 - The importance of international climate policies
AU - Beck, Ulrik R.
AU - Kruse-Andersen, Peter K.
AU - Stewart, Louis B.
PY - 2023/1
Y1 - 2023/1
N2 - A substantial literature investigates carbon leakage effects for large countries and climate coalitions. However,little is known about leakage effects for a small open economy within a climate coalition. To fill this gap inthe literature, we incorporate international climate policies relevant for a small open EU economy into thegeneral equilibrium model GTAP-E. We focus our analysis on Denmark, but we show that our framework canbe applied to any EU economy. We find substantial leakage associated with an economy-wide CO2e tax. Thisresult is strongly affected by EU climate policies. We also present sector-specific leakage rates and find largesectoral differences.
AB - A substantial literature investigates carbon leakage effects for large countries and climate coalitions. However,little is known about leakage effects for a small open economy within a climate coalition. To fill this gap inthe literature, we incorporate international climate policies relevant for a small open EU economy into thegeneral equilibrium model GTAP-E. We focus our analysis on Denmark, but we show that our framework canbe applied to any EU economy. We find substantial leakage associated with an economy-wide CO2e tax. Thisresult is strongly affected by EU climate policies. We also present sector-specific leakage rates and find largesectoral differences.
U2 - 10.1016/j.eneco.2022.106447
DO - 10.1016/j.eneco.2022.106447
M3 - Journal article
VL - 117
JO - Energy Economics
JF - Energy Economics
SN - 0140-9883
M1 - 106447
ER -
ID: 327772839