Carbon Leakage – a vacuum more than a leak


Title: Carbon Leakage – a vacuum more than a leak

Author: Peter Boag

Publisher: Canadian Fuels Association

Date: June 13, 2017

Full Text Article


The announced withdrawal of the United States from the Paris Accord highlights the carbon ‘leakage’ risks from aggressive Canadian GHG reduction policies that don’t take into account the integrated and interdependent nature of the Canadian and US economies.

Carbon leakage occurs when carbon costs in one jurisdiction cause greenhouse gas emitters to move their businesses to another jurisdiction where carbon costs either don’t exist or are lower than in their current location. The result is an economic loss in the ‘business losing’ jurisdiction, with no net reduction in global emissions. The emissions (and economic activity and jobs) have just ‘leaked’ from one jurisdiction to another…”

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