Publication: Carbon Leakage: The Impact of Asymmetric Regulation on Carbon‐Emitting Production
Carbon Leakage: The Impact of Asymmetric Regulation on Carbon‐Emitting Production
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Huang, X. (Natalie), Tan, T., & Toktay, L. B. (2021). Carbon Leakage: The Impact of Asymmetric Regulation on Carbon‐Emitting Production. Production and Operations Management, 30, 1886–1903. https://doi.org/10.1111/poms.13181
Abstract
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Abstract
Regions with carbon emission regulations bear the risk of “carbon leakage” if local producers shift production capacity to an unregulated region. We investigate the problem for a producer subject to geographically asymmetric emission regulation with uncertain future emission price. The producer has two ex ante options to lower its compliance cost: investing in clean production technology in the regulated region and building production capacity in the unregulated region. The producer determines its production quantities ex post, after
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- Toktay, L Beril
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Huang, X. (Natalie), Tan, T., & Toktay, L. B. (2021). Carbon Leakage: The Impact of Asymmetric Regulation on Carbon‐Emitting Production. Production and Operations Management, 30, 1886–1903. https://doi.org/10.1111/poms.13181
