Optimal unilateral climate policy with carbon leakage at the extensive and the intensive margins
研究了开放经济体在面临国内排放目标和碳泄漏厌恶时，如何设计最优单边气候政策，区分了企业外迁（广延边际）和市场份额损失（集约边际）两种泄漏渠道，并发现最优政策需包含选址补贴，相比统一碳税可带来约0.3%国民收入的社会福利提升。
Abstract We derive the optimal unilateral climate policy for an open economy with a domestic emissions target and aversion to carbon leakage, distinguishing between leakage at the extensive margin, where domestic firms relocate to foreign countries, and leakage at the intensive margin, where domestic firms lose world market shares. Implementing the optimal allocation requires several instruments including a lump‐sum location subsidy to counter leakage at the extensive margin. Simulations indicate substantial leakage at the extensive margin and a social welfare gain of around 0.3 percent of national income from our optimal leakage‐adjusted tax‐subsidy scheme compared to uniform carbon taxation.