TY  - RPRT
A1  - Bolz, Simon J.
A1  - Naumann, Fabrice
A1  - Richter, Philipp M.
T1  - Unilateral Environmental Policy and Offshoring
N2  - Expanding on a general equilibrium model of offshoring, we analyze the effects of a unilateral emissions tax increase on the environment, income, and inequality. Heterogeneous firms allocate labor across production tasks and emissions abatement, while only the most productive can benefit from lower labor and/or emissions costs abroad and offshore. We find a non-monotonic effect on global emissions, which decline if the initial difference in emissions taxes is small. For a sufficiently large difference, global emissions rise, implying emissions leakage of more than 100%. The underlying driver is a global technique effect: While the emissions intensity of incumbent non-offshoring firms declines, the cleanest firms start offshoring. Moreover, offshoring firms become dirtier, induced by a reduction in the foreign effective emissions tax in general equilibrium. Implementing a BCA prevents emissions leakage, reduces income inequality in the reforming country, but raises inequality across countries.
T3  - Würzburg Economic Papers (W. E. P.) - 110 
KW  - Umweltpolitik
KW  - Außenhandel
KW  - offshoring
KW  - emissions leakage
KW  - environmental policy
KW  - BCA
KW  - heterogeneous firms
KW  - income inequality
Y1  - 2024
U6  - http://nbn-resolving.de/urn/resolver.pl?urn:nbn:de:bvb:20-opus-359033
ER  -