Subglobal Climate Agreements and Energy-Intensive Activities: Is there a Carbon Haven for Copper?
Subglobal climate policies induce changes in international competitiveness and favor a relocation of carbon-emitting activities. We argue that many energy-intensive activities are also capital-intensive, so that carbon policies could affect rents rather than abatement or location. Taking copper a...
| Main Authors: | , , |
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| Format: | Working Paper |
| Language: | en_US |
| Published: |
MIT Center for Energy and Environmental Policy Research
2011
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| Online Access: | http://hdl.handle.net/1721.1/66272 |
| _version_ | 1826190435088859136 |
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| author | Lanz, Bruno, 1980- Rutherford, Thomas Fox Tilton, John E. |
| author_facet | Lanz, Bruno, 1980- Rutherford, Thomas Fox Tilton, John E. |
| author_sort | Lanz, Bruno, 1980- |
| collection | MIT |
| description | Subglobal climate policies induce changes in international competitiveness and favor a
relocation of carbon-emitting activities. We argue that many energy-intensive activities are
also capital-intensive, so that carbon policies could affect rents rather than abatement or
location. Taking copper as an example, we formulate a plant-level spatial equilibrium model
of the industry, and we estimate a set of elasticities to calibrate the behavioral parameters of
the model. Given 2007 market conditions, Monte Carlo simulations suggest that a $50/tCO2
tax in industrialized countries induces emissions reductions of less than one percent in the
copper industry, with a mean emission leakage rate of 25%. Our results conform with empirical
findings on the pollution haven effect but challenge projections from computable general
equilibrium models. |
| first_indexed | 2024-09-23T08:40:12Z |
| format | Working Paper |
| id | mit-1721.1/66272 |
| institution | Massachusetts Institute of Technology |
| language | en_US |
| last_indexed | 2024-09-23T08:40:12Z |
| publishDate | 2011 |
| publisher | MIT Center for Energy and Environmental Policy Research |
| record_format | dspace |
| spelling | mit-1721.1/662722019-04-09T19:07:12Z Subglobal Climate Agreements and Energy-Intensive Activities: Is there a Carbon Haven for Copper? Lanz, Bruno, 1980- Rutherford, Thomas Fox Tilton, John E. Subglobal climate policies induce changes in international competitiveness and favor a relocation of carbon-emitting activities. We argue that many energy-intensive activities are also capital-intensive, so that carbon policies could affect rents rather than abatement or location. Taking copper as an example, we formulate a plant-level spatial equilibrium model of the industry, and we estimate a set of elasticities to calibrate the behavioral parameters of the model. Given 2007 market conditions, Monte Carlo simulations suggest that a $50/tCO2 tax in industrialized countries induces emissions reductions of less than one percent in the copper industry, with a mean emission leakage rate of 25%. Our results conform with empirical findings on the pollution haven effect but challenge projections from computable general equilibrium models. Massachusetts Institute of Technology. Center for Energy and Environmental Policy Research 2011-10-17T15:27:55Z 2011-10-17T15:27:55Z 2011-02 Working Paper 2011-003 http://hdl.handle.net/1721.1/66272 en_US MIT-CEEPR;2011-003 An error occurred on the license name. An error occurred getting the license - uri. application/pdf MIT Center for Energy and Environmental Policy Research |
| spellingShingle | Lanz, Bruno, 1980- Rutherford, Thomas Fox Tilton, John E. Subglobal Climate Agreements and Energy-Intensive Activities: Is there a Carbon Haven for Copper? |
| title | Subglobal Climate Agreements and Energy-Intensive Activities: Is there a Carbon Haven for Copper? |
| title_full | Subglobal Climate Agreements and Energy-Intensive Activities: Is there a Carbon Haven for Copper? |
| title_fullStr | Subglobal Climate Agreements and Energy-Intensive Activities: Is there a Carbon Haven for Copper? |
| title_full_unstemmed | Subglobal Climate Agreements and Energy-Intensive Activities: Is there a Carbon Haven for Copper? |
| title_short | Subglobal Climate Agreements and Energy-Intensive Activities: Is there a Carbon Haven for Copper? |
| title_sort | subglobal climate agreements and energy intensive activities is there a carbon haven for copper |
| url | http://hdl.handle.net/1721.1/66272 |
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