Subglobal Climate Agreements and Energy-Intensive Activities : Is there a Carbon Haven for Copper ? ∗

@inproceedings{Lanz2011SubglobalCA,
  title={Subglobal Climate Agreements and Energy-Intensive Activities : Is there a Carbon Haven for Copper ? ∗},
  author={Bruno Lanz and Thomas F. Rutherford and John E. Tilton},
  year={2011}
}
Subglobal climate policies induce changes in international competitiveness and favor a relocation of carbon-emitting activities. We argue that many energy-intensive activities are also capital-intensive, so that carbon policies could affect rents rather than abatement or location. Taking copper as an example, we formulate a plant-level spatial equilibrium model of the industry, and we estimate a set of elasticities to calibrate the behavioral parameters of the model. Given 2007 market… CONTINUE READING