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Social and Behavioral Sciences Commons™
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Full-Text Articles in Social and Behavioral Sciences
Negative Leakage, Kathy Baylis, Don Fullerton, Daniel Karney
Negative Leakage, Kathy Baylis, Don Fullerton, Daniel Karney
Don Fullerton
Our analytical general equilibrium model solves for effects of a small increase in carbon tax on leakage – the increase in emissions elsewhere. Identical consumers buy two goods using income from endowments that are mobile between sectors. Usually an increase in one sector’s tax raises output price, so consumption shifts to the other good, causing positive leakage. Here, we find a new negative effect not recognized in existing literature: the taxed sector substitutes away from carbon into clean inputs, so it may absorb resources, shrink the other sector, and reduce their emissions. This “abatement resource effect” can offset most or …
Can A Unilateral Carbon Tax Reduce Emissions Elsewhere?, Joshua Elliott, Don Fullerton
Can A Unilateral Carbon Tax Reduce Emissions Elsewhere?, Joshua Elliott, Don Fullerton
Don Fullerton
One country or sector that tries to reduce greenhouse gas emissions may fear that other countries or sectors will get a competitive advantage and increase emissions. Computable general equilibrium (CGE) models such as Elliott et al (2010a,b) indicate that 15% to 25% of abatement might be offset by this “leakage.” Yet the Fullerton et al (2012) simple two-sector analytical general equilibrium model shows an offsetting term with negative leakage. In this paper, we use a full CGE model with many countries and many goods to measure effects in a way that allows for this negative leakage term. We vary elasticities …
Social, Economic, And Ethical Concepts And Methods, Charles Kolstad, Kevin Urama, Don Fullerton, Et Al
Social, Economic, And Ethical Concepts And Methods, Charles Kolstad, Kevin Urama, Don Fullerton, Et Al
Don Fullerton
This framing chapter describes the strengths and limitations of the most widely used concepts and methods in economics, ethics, and other social sciences that are relevant to climate change. It also provides a reference resource for the other chapters in the Intergovernmental Panel on Climate Change (IPCC) Fifth Assessment Report (AR5), as well as for decision makers.