When one country decides to unilaterally implement climate legislation, there is concern that the emissions reduced locally will result in an increase in emissions elsewhere, with no net reduction in greenhouse gases. This phenomenon, known as leakage, can happen in two ways. First, if climate policies in one country or a group of countries reduce the global price of fossil fuels, countries without restrictions may increase their energy consumption. Second, some energy-intensive production could relocate to areas without restrictions, highlighting the sort of competitiveness issues that arise when only a subset of nations restricts emissions.
Continue Reading at
Related posts: