Carbon Leakage : Theory, Evidence and Policy Design

Carbon leakage is much discussed in carbon pricing policy. Stakeholders, especially emissions-intensive industries, have expressed concern about the implications of carbon pricing when they compete with firms located in jurisdictions without equivalent policies. This technical note provides an overv...

Full description

Bibliographic Details
Main Author: Partnership for Market Readiness
Format: Working Paper
Language:en_US
Published: World Bank, Washington, DC 2015
Subjects:
Online Access:http://hdl.handle.net/10986/22785
id okr-10986-22785
recordtype oai_dc
spelling okr-10986-227852021-04-23T14:04:11Z Carbon Leakage : Theory, Evidence and Policy Design Partnership for Market Readiness PMR Technical Note carbon pricing carbon leakage border tax adjustment greenhouse gas emissions emissions trading competitiveness mitigation carbon tax climate change emissions leakage Carbon leakage is much discussed in carbon pricing policy. Stakeholders, especially emissions-intensive industries, have expressed concern about the implications of carbon pricing when they compete with firms located in jurisdictions without equivalent policies. This technical note provides an overview of the issue of carbon leakage, discussing the theory, evidence and policy design. This issue is of interest to a range of PMR countries and is of great importance to successful design and implementation of carbon pricing policies. The technical note addresses three broad questions: – How to evaluate the expected competitiveness and carbon leakage impacts (negative and positive) due to carbon pricing policies for different sectors and the entire economy? – How to mitigate the risk of negative impacts and strengthen the positive impacts (through instrument design or complementary policies) in the short and long term, and for different levels of expected decarbonization? – How to manage the process of dialogue between a government, business and civil society on the implications for competitiveness and risks of carbon leakage, and their mitigation? It draws lessons from policymaking experience and academic evidence to provide guidance to countries on how to address issues of carbon leakage as they arise in their national contexts. 2015-10-20T23:21:56Z 2015-10-20T23:21:56Z 2015-10-20 Working Paper http://hdl.handle.net/10986/22785 en_US Partnership for Market Readiness Technical Papers CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank World Bank, Washington, DC Publications & Research Publications & Research :: Working Paper
repository_type Digital Repository
institution_category Foreign Institution
institution Digital Repositories
building World Bank Open Knowledge Repository
collection World Bank
language en_US
topic PMR Technical Note
carbon pricing
carbon leakage
border tax adjustment
greenhouse gas emissions
emissions trading
competitiveness
mitigation
carbon tax
climate change
emissions leakage
spellingShingle PMR Technical Note
carbon pricing
carbon leakage
border tax adjustment
greenhouse gas emissions
emissions trading
competitiveness
mitigation
carbon tax
climate change
emissions leakage
Partnership for Market Readiness
Carbon Leakage : Theory, Evidence and Policy Design
relation Partnership for Market Readiness Technical Papers
description Carbon leakage is much discussed in carbon pricing policy. Stakeholders, especially emissions-intensive industries, have expressed concern about the implications of carbon pricing when they compete with firms located in jurisdictions without equivalent policies. This technical note provides an overview of the issue of carbon leakage, discussing the theory, evidence and policy design. This issue is of interest to a range of PMR countries and is of great importance to successful design and implementation of carbon pricing policies. The technical note addresses three broad questions: – How to evaluate the expected competitiveness and carbon leakage impacts (negative and positive) due to carbon pricing policies for different sectors and the entire economy? – How to mitigate the risk of negative impacts and strengthen the positive impacts (through instrument design or complementary policies) in the short and long term, and for different levels of expected decarbonization? – How to manage the process of dialogue between a government, business and civil society on the implications for competitiveness and risks of carbon leakage, and their mitigation? It draws lessons from policymaking experience and academic evidence to provide guidance to countries on how to address issues of carbon leakage as they arise in their national contexts.
format Working Paper
author Partnership for Market Readiness
author_facet Partnership for Market Readiness
author_sort Partnership for Market Readiness
title Carbon Leakage : Theory, Evidence and Policy Design
title_short Carbon Leakage : Theory, Evidence and Policy Design
title_full Carbon Leakage : Theory, Evidence and Policy Design
title_fullStr Carbon Leakage : Theory, Evidence and Policy Design
title_full_unstemmed Carbon Leakage : Theory, Evidence and Policy Design
title_sort carbon leakage : theory, evidence and policy design
publisher World Bank, Washington, DC
publishDate 2015
url http://hdl.handle.net/10986/22785
_version_ 1764452182911877120