Unilateral CO2 Reductions and Carbon Leakage: The Consequences of International Trade in Oil and Basic Materials

Felder, Stefan; Rutherford, Thomas F.

doi:10.1006/jeem.1993.1040

Cited by 261 publications

(140 citation statements)

References 3 publications

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“…This would aggravate competition for food between livestock and wildlife and potentially attenuate the conservation benefits. Following earlier economic literature on such attenuating effects (such as in the literature on carbon emissions, see for example Felder, 1993) we refer to this outcome as 'leakage'. We have used SAVANNA to explore this issue.…”

Section: Exploring Leakagementioning

confidence: 99%

Elephants or onions? Paying for nature in Amboseli, Kenya

Bulte¹,

Boone²,

Stringer³

et al. 2008

Envir. Dev. Econ.

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ABSTRACT. Traditional grazing grounds near Amboseli National Park (Kenya) are being rapidly converted to cropland -a process that closes important wildlife corridors. We use a spatially explicit simulation model that integrates ecosystem dynamics and pastoral decision-making to explore the scope for introducing a 'payments for ecosystem services' scheme to compensate pastoralists for spillover benefits associated with forms of land use that are compatible with wildlife conservation. Our break-even cost analysis suggests that the benefits of such a scheme likely exceed its costs for a large part of the study area, but that 'leakage effects' through excessive stocking rates warrant close scrutiny.

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Section: Exploring Leakagementioning

confidence: 99%

Elephants or onions? Paying for nature in Amboseli, Kenya

Bulte¹,

Boone²,

Stringer³

et al. 2008

Envir. Dev. Econ.

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“…For example, it may occur through fuel price changes (e.g., Felder and Rutherford, 1993;Burniaux and Martins, 2000;Ishikawa and Kiyono, 2000;Ishikawa, 2004, 2012). This is because when a country adopts policies to reduce GHG emissions, its demand for fossil fuels is likely to decrease.…”

Section: Introductionmentioning

confidence: 99%

Greenhouse-Gas Emission Controls and Firm Locations in North–South Trade

Ishikawa

Okubo

2015

Environ Resource Econ

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This paper studies greenhouse gas (GHG) emission controls in the presence of international carbon leakage through international firm relocation. In a trade and geography framework with two countries ("North" and "South"), only North sets a target for GHG emissions. We compare the consequences of emission quotas, emission taxes, and emission standards under trade liberalization for the location of pollution-intensive and less pollution-intensive sectors and the degree of carbon leakage. With low trade costs, further trade liberalization increases global emissions by facilitating carbon leakage. Regulation by quotas leads to spatial sorting with less carbon leakage and less global emissions than regulation by taxes and standards.

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“…The literature on carbon leakage has been initiated by Rutherford (1992) and Felder and Rutherford (1993) who coined the term leakage . Carbon leakage plays a major role in the evaluation and design of alternative climate policies (Droege and Cooper, 2009;Hood, 2010).…”

Section: Introductionmentioning

confidence: 99%

Capacity decisions with demand fluctuations and carbon leakage

Meunier

Ponssard

2014

Resource and Energy Economics

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For carbon-intensive, internationally-traded industrial goods, a unilateral increase in the domestic CO 2 price may result in the reduction of the domestic production but an increase of imports. In such sectors as electricity, cement or steel, the trade ows result more from shortterm regional disequilibria between supply and demand than from international competition. This paper formalizes this empirical observation and characterizes its impact on leakage. Domestic rms invest in home plants under uncertainty; then, as uncertainty unfolds, they may source the home market from their home plants or from imports. We prove that there would be no leakage in the short-term (without capacity adaptation) but there would be in the long-term (with capacity adaption). Furthermore, the larger the uncertainty the larger the leakage is. We also characterize the impacts of uncertainty on the (short-term and long-term) pass-through rates. In the concluding section we brie y discuss the implications of these results for the evaluation of climate policies. JEL Classi cation: D81, D92, Q56, L13.

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Unilateral CO2 Reductions and Carbon Leakage: The Consequences of International Trade in Oil and Basic Materials

Cited by 261 publications

References 3 publications

Elephants or onions? Paying for nature in Amboseli, Kenya

Elephants or onions? Paying for nature in Amboseli, Kenya

Greenhouse-Gas Emission Controls and Firm Locations in North–South Trade

Capacity decisions with demand fluctuations and carbon leakage

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