Greenhouse-Gas Emission Controls and International Carbon Leakage through Trade Liberalization

  title={Greenhouse-Gas Emission Controls and International Carbon Leakage through Trade Liberalization},
  author={ISHIKAWA Jota and OKUBO Toshihiro},
  • ISHIKAWA Jota, OKUBO Toshihiro
  • Published 2009
This paper studies greenhouse-gas (GHG) emission controls in the presence of carbon leakage through international firm relocation. The Kyoto Protocol requires developed countries to reduce GHG emissions by a certain amount. Comparing emission quotas with emission taxes, we show that taxes coupled with lower trade costs facilitate more firm relocations than quotas do, causing more international carbon leakage. Thus, if a country is concerned about global emissions, emission quotas would be… CONTINUE READING
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