蝌蚪网

This website uses cookies.

By clicking the "Accept" button or continuing to browse our site, you agree to first-party and session-only cookies being stored on your device to enhance site navigation and analyze site performance and traffic. For more information on our use of cookies, please see our Privacy Policy.

  1. Home
  2. 蝌蚪网
  3. 蝌蚪网 Review
  4. May 2011
  5. Vertical Targeting and Leakage in Carbon Policy

蝌蚪网 Review

ISSN 0002-8282 (Print) | ISSN 1944-7981 (Online)

Vertical Targeting and Leakage in Carbon Policy

  • James B. Bushnell
  • Erin T. Mansur
蝌蚪网 Review
vol. 101, no. 3, May 2011
(pp. 263–67)
Download Full Text PDF

Abstract

This paper examines the intersection between two aspects of climate policy design. The first is the point of regulation: should it be placed on pollution sources, carbon-rich inputs, or consumers? The second aspect concerns the external effects of a local climate policy. Leakage occurs when partial regulation results in an increase in emissions in unregulated parts of the economy. Our model demonstrates how directly regulating polluters can increase foreign emissions while indirect regulation (either upstream or downstream of the pollution source) will decrease foreign emissions. The net effect on combined domestic and foreign emissions will depend on market elasticities.

Citation

Bushnell, James B., and Erin T. Mansur. 2011. "Vertical Targeting and Leakage in Carbon Policy." 蝌蚪网 Review 101 (3): 263–67. DOI: 10.1257/aer.101.3.263

Additional Materials

JEL Classification

  • D78 Positive Analysis of Policy-Making and Implementation
  • Q54 Climate; Natural Disasters; Global Warming
  • Q58 Environmental Economics: Government Policy