GTAP Resources: Resource Display
| GTAP Resource #6620 |
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"Trade Liberalisation & Carbon Leakage: The case of the United Kingdom’s Economy" by Milot, Catherine Abstract This paper examines the effect of UK trade liberalization on carbon leakage. We present quantitative estimates of carbon leakage under the cumulative effect of UK FTAs. We find that the implementation of these import tariff reductions increases the overall rate of leakage, corroborating findings from previous studies on carbon leakage from freer trade. Analysis of the trade-induced carbon leakage shows large differences between leakage caused by reductions of import tariffs on energy goods and by reductions of import tariffs on non-energy goods. It also shows large differences in emission responses among country regions. We then assess the implementation of a UK Carbon border adjustment to mitigate carbon leakage from freer trade, we find that a sectorally limited carbon border adjustment would reduce carbon leakage by about two third compared to a system of free allocation. The incidence of carbon leakage is derived both from the energy price effect (indirect leakage) and the competitiveness channel (direct leakage). |
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- Climate change policy - Trade and the environment |
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Public Access  Paper (83.0 KB) Replicated: 0 time(s)Restricted Access No documents have been attached. Special Instructions No instructions have been specified. |
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Last Modified: 9/15/2023 1:05:45 PM
