Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/231787 
Year of Publication: 
2019
Citation: 
[Journal:] Journal of Environmental Economics and Management [ISSN:] 0095-0696 [Volume:] 93 [Publisher:] Elsevier [Place:] Amsterdam [Year:] 2019 [Pages:] 125-147
Publisher: 
Elsevier, Amsterdam
Abstract: 
Carbon leakage is of interest in both academic and policy debates about the effectiveness of unilateral climate policy, especially in Europe, where the EU Emissions Trading System (EU ETS) affects many traded sectors. We review how the literature identifies leakage and the pollution haven effect. We then evaluate whether EU ETS emission costs caused carbon leakage in European manufacturing, using trade flows in embodied carbon and value from the Global Trade Analysis Project (GTAP). We find no evidence that the EU ETS caused carbon leakage.
Subjects: 
Carbon leakage
Pollution haven
EU ETS
Cap-and-trade
CO emissions
Policy evaluation
JEL: 
Q56
F18
Q58
Q54
Published Version’s DOI: 
Creative Commons License: 
cc-by-nc-nd Logo
Document Type: 
Article
Document Version: 
Accepted Manuscript (Postprint)

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