Does the EU ETS cause carbon leakage in European manufacturing?
By Helene Naegele, A. Zaklan. Journal of Environmental Economics and Management, 2019
254 citations recorded by the source corpus.
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.
Subfields: Economics and Econometrics, Environmental Engineering
View Paper: https://www.semanticscholar.org/paper/2370a84e59f379d7e38c8f509770a82920e7d9b6
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Citations in the corpus
- Why does emissions trading under the EU Emissions Trading System (ETS) not affect firms’ competitiveness? Empirical findings from the literature (2018, background): “…analyses show that the carbon price level did not lead to any significant carbon leakage in the European primary aluminium sector (Sartor, 2012), in the cement and steel sectors (Boutabba & Lardic, 2017; Branger, Quirion, & Chevallier, 2017) or in manufacturing sectors11 (Naegele & Zaklan, 2017).”
- The effect of carbon pricing on technological change for full energy decarbonization: A review of empirical ex‐post evidence (2020, methodology): “For instance, this approach is often used by articles analyzing carbon leakage (Naegele & Zaklan, 2019).”