The Global Effects of Subglobal Climate Policies
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Christoph Boehringer
Abstract
Individual countries are in the process of legislating responses to the challenges posed by climate change. The prospect of rising carbon prices raises concerns in these nations about the effects on the competitiveness of their own energy-intensive industries and the potential for carbon leakage, particularly leakage to emerging economies that lack comparable regulation. In response, certain developed countries are proposing controversial trade-related measures and allowance allocation designs to complement their climate policies. Missing from much of the debate on trade-related measures is a broader understanding of how climate policies implemented unilaterally (or subglobally) affect all countries in the global trading system. Arguably, the largest impacts are from the targeted carbon pricing itself, which generates macroeconomic effects, terms-of-trade changes, and shifts in global energy demand and prices; it also changes the relative prices of certain energy-intensive goods. This paper studies how climate policies implemented in certain major economies (the European Union and the United States) affect the global distribution of economic and environmental outcomes and how these outcomes may be altered by complementary policies aimed at addressing carbon leakage.
©2011 Walter de Gruyter GmbH & Co. KG, Berlin/Boston
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Articles in the same Issue
- Symposium
- Distributional Implications of Alternative U.S. Greenhouse Gas Control Measures
- Comment on 'Distributional Implications of Alternative U.S. Greenhouse Gas Control Measures'
- Equity, Heterogeneity and International Environmental Agreements
- Comment on "Equity, Heterogeneity and International Environmental Agreements"
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- Comment on "Climate Policy's Uncertain Outcomes for Households: The Role of Complex Allocation Schemes in Cap-and-Trade"
- The Social Evaluation of Intergenerational Policies and Its Application to Integrated Assessment Models of Climate Change
- Comment on "The Social Evaluation of Intergenerational Policies and Its Application to Integrated Assessment Models of Climate Change"
- What are the Costs of Meeting Distributional Objectives for Climate Policy?
- Comment on "What are the Costs of Meeting Distributional Objectives for Climate Policy?"
- CIM-EARTH: Framework and Case Study
- Comment on "CIM-EARTH: Framework and Case Study"
- The Global Effects of Subglobal Climate Policies
- Comment on "The Global Effects of Subglobal Climate Policies"
- Analytical General Equilibrium Effects of Energy Policy on Output and Factor Prices
- Comment on "Analytical General Equilibrium Effects of Energy Policy on Output and Factor Prices"
- The Distributional Impact of Climate Policy
- Comment on "The Distributional Impact of Climate Policy"
- On the Economics of Climate Policy
- Comment on "On the Economics of Climate Policy": Is Climate Change Mitigation the Ultimate Arbitrage Opportunity?
