000172711 001__ 172711 000172711 005__ 20210819132843.0 000172711 0247_ $$2doi$$a10.22004/ag.econ.172711 000172711 037__ $$a824-2016-54726 000172711 041__ $$aeng 000172711 084__ $$aF12 000172711 084__ $$aF23 000172711 084__ $$aQ58 000172711 245__ $$aUnilateral Climate Policy and Foreign Direct Investment with Firm and Country Heterogeneity 000172711 260__ $$c2014-05 000172711 269__ $$a2014-05 000172711 270__ $$mfsr@dis.uniroma1.it$$pSanna-Randaccio, Francesca 000172711 300__ $$a37 000172711 336__ $$aWorking or Discussion Paper 000172711 490__ $$aCCSD 000172711 490__ $$a55.2014 000172711 520__ $$aWe contribute to the debate on the impact of unilateral climate policy with a two-country two-firm international oligopoly model accounting for endogenous plant location and heterogeneity in both country size and firm’s emissions technology. Our results suggest that, if the carbon price differential is moderate as compared to unit transport costs and the relative size of the highly regulated country is big enough, a no relocation equilibrium may prevail also in the long run. A large market asymmetry coupled with a small technology gap emerges as the only configuration in which unilateral climate policy leads to a fall in world emissions irrespective of the optimal location choice. Thus for being effective and not leading to production relocation, unilateral climate policy should be moderate, implemented by a sufficiently large area and complemented by mechanisms for promoting the international transfer of clean technologies. Welfare implications are also discussed. 000172711 546__ $$aEnglish 000172711 650__ $$aEnvironmental Economics and Policy 000172711 6531_ $$aForeign Direct Investment 000172711 6531_ $$aEmissions Technologies 000172711 6531_ $$aCarbon leakage 000172711 6531_ $$aClimate Policy 000172711 700__ $$aSanna-Randaccio, Francesca 000172711 700__ $$aSestini, Roberta 000172711 700__ $$aTarola, Ornella 000172711 8564_ $$99d75c976-d44a-40df-aed0-5c24505dcff6$$s1326857$$uhttps://ageconsearch.umn.edu/record/172711/files/NDL2014-055R.pdf 000172711 887__ $$ahttp://purl.umn.edu/172711 000172711 909CO $$ooai:ageconsearch.umn.edu:172711$$pGLOBAL_SET 000172711 912__ $$nSubmitted by Nancy Elera (nancy.elera@feem.it) on 2014-06-13T08:40:02Z No. of bitstreams: 1 NDL2014-055.pdf: 1255935 bytes, checksum: e486ff41cb795cbcc7b0b61da9bb7574 (MD5) 000172711 912__ $$nMade available in DSpace on 2014-06-13T08:40:02Z (GMT). No. of bitstreams: 1 NDL2014-055.pdf: 1255935 bytes, checksum: e486ff41cb795cbcc7b0b61da9bb7574 (MD5) Previous issue date: 2014-05 000172711 913__ $$aLicense granted by Nancy Elera (nancy.elera@feem.it) on 2014-06-13T08:36:23Z (GMT): <center> <h2> Deposit Agreement </h2> </center> I represent that I am the creator of the digital material identified herein (&ldquo;Work&rdquo;). I represent that the work is original and that I either own all rights of copyright or have the right to deposit the copy in a digital archive such as AgEcon Search. I represent that in regard to any non-original material included in the Work I have secured written permission of the copyright owner (s) for this use or believe this use is allowed by law. I further represent that I have included all appropriate credits and attributions. I hereby grant the Regents of the University of Minnesota (&ldquo;University&rdquo;), through AgEcon Search, a non-exclusive right to access, reproduce, and distribute the Work, in whole or in part, for the purposes of security, preservation, and perpetual access. I grant the University a limited, non-exclusive right to make derivative works for the purpose of migrating the Work to other media or formats in order to preserve access to the Work. I do not transfer or intend to transfer any right of copyright or other intellectual property to the University. If the Deposit Agreement is executed by the Author�s Representative, the Representative shall separately execute the following representation: I represent that I am authorized by the Author to execute this Deposit Agreement on behalf of the Author. 000172711 980__ $$a824 000172711 982__ $$gFondazione Eni Enrico Mattei (FEEM)>Climate Change and Sustainable Development