A Numerical Investigation of the Potential for Negative Emissions Leakage

S-Tier
Journal: American Economic Review
Year: 2013
Volume: 103
Issue: 3
Pages: 320-25

Score contribution per author:

4.022 = (α=2.01 / 2 authors) × 4.0x S-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

Emissions restrictions in one region may decrease emissions elsewhere (negative leakage), as increased demand for capital and labor to abate emissions in constrained regions may reduce output in unconstrained regions. We investigate leakage in computable general equilibrium (CGE) models under alternative fossil fuel supply elasticity values and factor mobility assumptions. We find that fossil fuel supply elasticities must be equal or close to infinity to generate net negative leakage. As empirical estimates for fossil fuel supply elasticities are less than 1, we conclude that leakage estimates from CGE models are unlikely to be negative.

Technical Details

RePEc Handle
repec:aea:aecrev:v:103:y:2013:i:3:p:320-25
Journal Field
General
Author Count
2
Added to Database
2026-01-29