Negative Leakage

On the effects of unilateral environmental policy on offshoring in multi‐stage production processes

“…Depending on the magnitude of this factor price effect, it is possible that in industries with low emission intensity the wage effect dominates the emission cost effect such that the new equilibrium upstream industry z > z and upstream industries previously located in South move to North. Similar to Baylis et al (2014) and Bogmans (2015), we found an instance of negative leakage in parts of our economy. But note that the ω-schedule is increasing in z.…”

The effectiveness of incomplete and overlapping pollution regulation: Evidence from bans on phosphate in automatic dishwasher detergent

“…A N U S C R I P T 5 This paper contributes to recent work that has explored unintended consequences of incomplete and overlapping pollution regulations (Becker and Henderson 2000;Copeland and Taylor 2005;Bushnell, Peterman, and Wolfram 2008;Fowlie 2009;Fowlie 2010;Goulder and Stavins 2011;Goulder, Jacobsen, and van Benthem 2012;Baylis, Fullerton, and Karney 2014). 7 We extend the literature in six important ways.…”

Balancing the carbon budget for oil: The distributive effects of alternative policies

“…11 When a change in policy not only induces regulated consumers to cut their cumulative emissions but also induces unregulated consumers to reduce their emissions, the latter reduction has been dubbed "negative leakage" (initially popularized by Fullerton et al 2011 and published as Baylis et al, 2014). Negative leakage can occur in general equilibrium models through channels of labor and capital inputs (Baylis et al 2014).…”

“…Negative leakage can occur in general equilibrium models through channels of labor and capital inputs (Baylis et al 2014). International spillovers of input-saving technical change, if large enough, can also lead to negative leakage in general equilibrium models with input…”