Carbon leakage occurs when climate change policy aimed at reducing carbon dioxide emissions in one country leads to an increase in carbon dioxide emissions in a country that is not bound by these policies. Given that climate change is a global issue, carbon leakage impacts upon the effectiveness of climate change policies. This independent study by AEA, in partnership with CE Delft and commissioned by BIS examines the cumulative impact of climate change policies on carbon leakage. The report brings together findings and analysis from a wide range of primary literature in this area and where possible, conclusions relevant to the UK are drawn.
Linda Brinke. AEA - Adarsh Varma, Rob Milnes, Karen Miller and Evan Williams