Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/297266 
Year of Publication: 
2023
Series/Report no.: 
IFN Working Paper No. 1470
Publisher: 
Research Institute of Industrial Economics (IFN), Stockholm
Abstract: 
This study estimates the impact of carbon pricing on international trade in equipment used in the combustion of fossil fuels during the period 1995-2021. Using detailed data on bilateral trade combined with data on domestic carbon prices, we find that carbon pricing policies are associated with greater exports of this equipment. We provide a simple model of international trade in polluting technologies that can explain this outcome. Our results provide new evidence for this unexplored form of leakage due to more stringent climate policies.
Subjects: 
emissions pricing
cap and trade
carbon leakage
international trade in technologies
JEL: 
F14
F18
Q37
Q58
Q54
Document Type: 
Working Paper

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