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Project Citation: 

Winchester, Niven, and Rausch, Sebastian. Replication data for: A Numerical Investigation of the Potential for Negative Emissions Leakage. Nashville, TN: American Economic Association [publisher], 2013. Ann Arbor, MI: Inter-university Consortium for Political and Social Research [distributor], 2019-10-11. https://doi.org/10.3886/E112626V1

Project Description

Summary:  View help for Summary Emissions restrictions in one region may decrease emissions elsewhere (negative leakage), as increased demand for capital and labor to abate emissions in constrained regions may reduce output in unconstrained regions. We investigate leakage in computable general equilibrium (CGE) models under alternative fossil fuel supply elasticity values and factor mobility assumptions. We find that fossil fuel supply elasticities must be equal or close to infinity to generate net negative leakage. As empirical estimates for fossil fuel supply elasticities are less than 1, we conclude that leakage estimates from CGE models are unlikely to be negative.

Scope of Project

JEL Classification:  View help for JEL Classification
      Q54 Climate; Natural Disasters and Their Management; Global Warming
      Q58 Environmental Economics: Government Policy


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