Grubb, Michael;
Jordan, Nino David;
Hertwich, Edgar;
Neuhoff, Karsten;
Das, Kasturi;
Bandyopadhyay, Kaushik Ranjan;
van Asselt, Harro;
... Oh, Hyungna; + view all
(2022)
Carbon Leakage, Consumption, and Trade.
Annual Review of Environment and Resources
, 47
pp. 753-795.
10.1146/annurev-environ-120820-053625.
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Abstract
We review the state of knowledge concerning international CO2 emission transfers associated particularly with trade in energy-intensive goods and concerns about carbon leakage arising from climate policies. The historical increase in aggregate emission transfers from developing to developed countries peaked around 2006 and declined since. Studies find no evidence that climate policies lead to carbon leakage, but this is partly due to shielding of key industrial sectors, which is incompatible with deep decarbonization. Alternative or complementary consumption-based approaches areneeded. Private sector initiatives to trace and address carbon emissions throughout supply chains have grown substantially but cannot compensate for inadequate policy. Three main price-based approaches to tackling carbon leakage are potentially compatible with international trade rules: border adjustments on imports, carbon consumption charges, and climate excise contributions combined with emissions trading. We also consider standards and public procurement options to tackle embodied emissions. Finally, we discuss proposals for carbon clubs involving cooperation among a limited set of countries.
| Type: | Article |
|---|---|
| Title: | Carbon Leakage, Consumption, and Trade |
| Open access status: | An open access version is available from UCL Discovery |
| DOI: | 10.1146/annurev-environ-120820-053625 |
| Publisher version: | https://doi.org/10.1146/annurev-environ-120820-053... |
| Language: | English |
| Additional information: | © 2022 by Annual Reviews. This work is licensed under a Creative Commons Attribution 4.0 International License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original author and source are credited. See credit lines of images or other third-party material in this article for license information |
| Keywords: | carbon leakage, climate policy, embodied emissions, industrial decarbonization, international trade, consumption, equity, climate clubs |
| UCL classification: | UCL > Provost and Vice Provost Offices > UCL BEAMS > Faculty of the Built Environment UCL > Provost and Vice Provost Offices > UCL BEAMS > Faculty of the Built Environment > Bartlett School Env, Energy and Resources UCL > Provost and Vice Provost Offices > UCL BEAMS UCL |
| URI: | https://discovery.ucl.ac.uk/id/eprint/10157585 |
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