AEA Papers and Proceedings
ISSN 2574-0768 (Print) | ISSN 2574-0776 (Online)
Challenges in the Measurement of Leakage Risk
AEA Papers and Proceedings
vol. 108,
May 2018
(pp. 124–29)
Abstract
Concerns about emissions leakage, i.e., the increase in emissions in foreign jurisdictions induced by a domestic emissions regulation, loom large in debates about unilateral climate change policy. Correctly identifying the kinds of economic activities most at risk of carbon leakage is a critical first step in the design of effective leakage mitigation. We briefly summarize current approaches to assessing leakage risk and highlight a sizable gap between academic research and real-world policy implementation. An emerging research agenda that aims to close this gap is discussed.Citation
Fowlie, Meredith, and Mar Reguant. 2018. "Challenges in the Measurement of Leakage Risk." AEA Papers and Proceedings, 108: 124–29. DOI: 10.1257/pandp.20181087Additional Materials
JEL Classification
- Q53 Air Pollution; Water Pollution; Noise; Hazardous Waste; Solid Waste; Recycling
- Q54 Climate; Natural Disasters and Their Management; Global Warming
- Q58 Environmental Economics: Government Policy