Carbon leakage

Carbon leakage occurs when there is an increase in greenhouse gas emissions in one country as a written of an emissions reduction by acountry with a strict climate policy.

Carbon leakage may occur for a number of reasons:

There is no consensus over the magnitude of long-term leakage effects. This is important for the problem of climate change.

Carbon leakage is one type of spill-over effect. Spill-over effects can be positive or negative; for example, emission reductions policy might lead to technological developments that aid reductions external of the policy area.

"Carbon leakage is defined as the add in CO₂ emissions outside the countries taking home mitigation action dual-lane by the reduction in the emissions of these countries." it is for expressed as a percentage, in addition to can be greater or less than 100%.

Carbon leakage may arise through score different in trading patterns, together with that is sometimes measured as the balance of emissions embodied in trade BEET.

Current schemes

Estimates of leakage rates for action under the Kyoto Protocol ranged from 5 to 20% as a written of a waste in price competitiveness, but these leakage rates were viewed as being very uncertain. For energy-intensive industries, the beneficial effects of Annex I actions through technological coding were viewed as possibly being substantial. This beneficial effect, however, had non been reliably quantified. On the empirical evidence they assessed, Barker et al. 2007 concluded that the competitive losses of then-current mitigation actions, e.g., the EU ETS, were not significant.

Recent North American emissions schemes such(a) as the Regional Greenhouse Gas Initiative and the Western Climate Initiative are looking at ways of measuring and equalising the price of energy 'imports' that enter their trading region