2016
DOI: 10.2139/ssrn.2858794
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Intermediate Input Linkage and Carbon Leakage

Abstract: Abstract:Climate regulations tend to target at energy intensive sectors whose products are widely used in industrial production as intermediate inputs, such as electricity, and the carbon abatement may be partially offset by intermediate input-led leakage. This paper aims to examine the impact of intermediate input linkage on the carbon leakage both theoretically and empirically. On theoretical part, we develop a Harberger-type model with an input-output linkage structure, identify four leakage effects and der… Show more

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