Climate Campaigns, Cap and Trade, and Carbon Leakage: Why Trying to Reduce Your Carbon Footprint Can Harm the Climate

摘要: AbstractGovernments and environmental NGOs campaign for carbon footprint reductions by households. Many of the behavioral changes recommended reduce demand goods produced sectors covered cap-and-trade schemes. With a binding cap, greenhouse gas emissions from those do not change. I show that climate campaigns create leakage effects if coverage schemes is incomplete. Campaigns shift away subject to cap increase aggregate emissions, as footprints generally capped are emission intensive. However, targeting scheme or propagating retiring allowances emissions.