Greenhouse-Gas Emission Controls and Firm Locations in North–South Trade

Jota Ishikawa, Toshihiro Okubo

Research output: Contribution to journalArticle

2 Citations (Scopus)

Abstract

This paper studies greenhouse-gas emission (GHG) controls in the presence of international carbon leakage through international firm relocation. In a new economic geography model with two countries (‘North’ and ‘South’), only North sets a target for GHG emissions. We compare the consequences of emission quotas and emission taxes under trade liberalization on location of two manufacturing sectors with different emission intensities and degrees of carbon leakage. With low trade costs, further trade liberalization increases global emissions by facilitating carbon leakage. Regulation by quotas leads to spatial sorting, resulting in less carbon leakage and less global emissions than regulation by taxes.

Original languageEnglish
Pages (from-to)1-24
Number of pages24
JournalEnvironmental and Resource Economics
DOIs
Publication statusAccepted/In press - 2015 Dec 28

Fingerprint

Emission control
emission control
Gas emissions
Greenhouse gases
greenhouse gas
Carbon
leakage
Taxation
trade liberalization
carbon
Relocation
Sorting
economic geography
Economics
relocation
firm
Greenhouse gas emissions
Firm location
sorting
Carbon leakage

Keywords

  • Carbon leakage
  • Emission quota
  • Emission tax
  • Firm relocation
  • Global warming
  • Trade liberalization

ASJC Scopus subject areas

  • Management, Monitoring, Policy and Law
  • Aerospace Engineering

Cite this

Greenhouse-Gas Emission Controls and Firm Locations in North–South Trade. / Ishikawa, Jota; Okubo, Toshihiro.

In: Environmental and Resource Economics, 28.12.2015, p. 1-24.

Research output: Contribution to journalArticle

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