Challenges in the Measurement of Leakage Risk

Mar Reguant, Meredith Fowlie

Research output: Contribution to journalArticle

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.
Original languageEnglish (US)
Pages (from-to)124-129
Number of pages6
JournalAmerican Economic Review Papers and Proceedings
Volume108
StatePublished - May 2018

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