Arbeitspapier
Subglobal climate agreements and energy-intensive activities: An evaluation of carbon leakage in the copper industry
Subglobal climate policies induce changes in international competitiveness and favor a relocation of carbon-emitting activities to non-abating regions. In this paper, we evaluate the potential for CO2 abatement and the emissions `leakage' effect in the copper industry, a prominent energy-intensive trade-exposed sector. We formulate a plant-level spatial equilibrium model for copper commodities in which parameters describing the behavioral response of agents are calibrated to econometric estimates of price elasticities. We find producers and consumers to be price inelastic even in the long-run, making the copper industry unresponsive to climate policies. Monte Carlo simulations with our model based on statistical uncertainty on elasticity estimates suggest that around 30% of emissions reductions in industrialized countries would be compensated by an increase of emissions in non-abating countries.
- Language
-
Englisch
- Bibliographic citation
-
Series: Economics Working Paper Series ; No. 13/174
- Classification
-
Wirtschaft
Trade and Environment
International Institutional Arrangements
Taxation and Subsidies: Externalities; Redistributive Effects; Environmental Taxes and Subsidies
Climate; Natural Disasters and Their Management; Global Warming
Environmental Economics: Government Policy
- Subject
-
Carbon leakage
Pollution haven effect
Climate policy
International environmental agreements
International trade
Copper industry
Umweltabkommen
Treibhausgas-Emissionen
Umweltabgabe
Umweltstandard
Branchenentwicklung
Kupferindustrie
Monte-Carlo-Simulation
Welt
- Event
-
Geistige Schöpfung
- (who)
-
Lanz, Bruno
Rutherford, Thomas F.
Tilton, John E.
- Event
-
Veröffentlichung
- (who)
-
ETH Zurich, CER-ETH - Center of Economic Research
- (where)
-
Zurich
- (when)
-
2013
- DOI
-
doi:10.3929/ethz-a-007623307
- Handle
- Last update
-
10.03.2025, 11:43 AM CET
Data provider
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Arbeitspapier
Associated
- Lanz, Bruno
- Rutherford, Thomas F.
- Tilton, John E.
- ETH Zurich, CER-ETH - Center of Economic Research
Time of origin
- 2013
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