Chapter in:
Karen Pittel, Rick van der Ploeg and Cees Withagen (eds.), Climate Policy and Nonrenewable Resources. The Green Paradox and Beyond. MIT Press, 2014.
Abstract:
Unless all countries cooperate on demand-side climate policies such as a carbon tax, it is well-known that the attempts of some countries to reduce carbon emissions through demand-side climate policies, such as a carbon tax or emission quotas, may be undermined by increased emission by other countries, so-called carbon leakage. An early discussion of this was given by Bohm (1993), who also discussed alternative policies that to a less extent were vulnerable to carbon leakage. One of the policies discussed by Bohm was supply-side policies, namely policies aimed at reducing the supply of fossil fuels instead of the use of...
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