Can a Unilateral Carbon Tax Reduce Emissions Elsewhere?

Joshua Elliott, Don Fullerton

Most CGE models do not allow for negative leakage. In this paper, we use a full CGE model with many countries and many goods to measure effects in a way that allows for negative leakage. We vary elasticities of substitution and confirm the analytical model's prediction that negative leakage depends on the ability of consumers to substitute into the untaxed good and the ability of firms to substitute from carbon emissions into labor or capital

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Year of publication:	March 2013
Authors:	Elliott, Joshua
Other Persons:	Fullerton, Don (contributor)
Institutions:	National Bureau of Economic Research (contributor)
Publisher:	Cambridge, Mass : National Bureau of Economic Research
Subject:	Ökosteuer \| Environmental tax \| Theorie \| Theory \| Wirkungsanalyse \| Impact assessment \| Allgemeines Gleichgewicht \| General equilibrium \| Treibhausgas-Emissionen \| Greenhouse gas emissions \| Mehr-Länder-Modell \| Multi-country model \| Umweltabgabe \| Environmental charge \| Luftverschmutzung \| Air pollution

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