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Trade, Leakage, and the Design of a Carbon Tax

This paper considers the variety of climate policies applicable across countries, with some countries imposing stringent emissions policies and others doing very little. The writers posit that the variance in approaches creates incentive leakages and proceeds to consider solutions to the leakage problem based on its tax analytical model.

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About the author

David A. Weisbach, Samuel S. Kortum, Michael Wang, Yujia Yao

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