Calculating Carbon Tax and Mitigating Leakage

Calculating Carbon Tax and Mitigating Leakage

April, 2017

Clay Enos, Senior Consultant, Fisher International

EU reforms approved in February aim to shore up market pricing for carbon allowances. But there remains another threat on the horizon – that of “leakage,” the transfer of production to countries not subject to emissions constraints. This article examines how carbon regulation, including border taxes, might play out in the US pulp and paper market using a “what if” case analysis.

 

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April 12, 2017