Estimating carbon leakage from aviation by combining sectoral and general equilibrium models

Abstract

This article describes a procedure for estimating carbon leakage from policies targeting aviation based on alternative scenarios. The key innovation to ensure greater robustness is that all scenarios are simulated by two different types of models: a sectoral model for aviation and a computable general equilibrium model. • The implementation of scenario simulation in both models is explained • The calculation of carbon leakage is explained step by step

Estimating carbon leakage from aviation by combining sectoral and general equilibrium models