The effects of taxing carbon emissions on carbon leakage in developing countries
Fixing the leak: The spillover effects of taxing carbon emissions on developing countries
Policies to reduce carbon emissions via taxation and other regulatory tools are key in fighting climate change, yet little is known about their global spillover effects. A particular concern is “carbon leakage”, whereby taxing emissions by firms in the developed world shifts emissions to countries with less strict regulations. This research identifies the local effects on carbon leakage of multinational firms’ operations in Africa. The dataset can be an invaluable tool for policymakers and practitioners in formulating emissions-reduction policies.