Optimal Climate Policy in the Presence of Another Country’s Climate Policy

Kevin R. Kaushal

Strategic Behavior and the Environment2020https://doi.org/10.1561/102.00000093article
AJG 1
Weight
0.26

What the paper says

The allowances in an emission trading system (ETS) are commonly allocated for free to the emission-intensive and trade-exposed sector, e.g., in the form of output-based allocation (OBA). Recently an approach combining OBA with a consumption tax has been proposed to mitigate carbon leakage. This paper evaluates the potential outcome in a game of climate policies, by examining the Nash equilibrium outcome of a non-cooperative policy instrument game between regions that regulate their emissions separately. We construct a computable general equilibrium model and investigate the case when regions can choose to supplement their ETS with OBA and/or with a consumption tax, in the presence of another regulating region. In the context of the EU and China, we show how regional interests combined with a national climate target, may lead to different climate policy combinations.

2 citations

Open paper page →

Cite this paper

https://doi.org/https://doi.org/10.1561/102.00000093

Or copy a formatted citation

@article{kevin2020,
  title        = {{Optimal Climate Policy in the Presence of Another Country’s Climate Policy}},
  author       = {Kevin R. Kaushal},
  journal      = {Strategic Behavior and the Environment},
  year         = {2020},
  doi          = {https://doi.org/https://doi.org/10.1561/102.00000093},
}

Paste directly into BibTeX, Zotero, or your reference manager.

Flag this paper

Optimal Climate Policy in the Presence of Another Country’s Climate Policy

Flags are reviewed by the Arbiter methodology team within 5 business days.


Evidence weight

0.26

Balanced mode · F 0.40 / M 0.15 / V 0.05 / R 0.40

F · citation impact0.00 × 0.4 = 0.00
M · momentum0.20 × 0.15 = 0.03
V · venue signal0.50 × 0.05 = 0.03
R · text relevance †0.50 × 0.4 = 0.20

† Text relevance is estimated at 0.50 on the detail page — for your query’s actual relevance score, open this paper from a search result.