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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In Economics and Econometrics

  1. Eugénie Joltreau
  2. Germán Bersalli
  3. Katrin Sommerfeld
  4. Anthony G. Patt
  5. J. Lilliestam

In Environmental Engineering

  1. Eugénie Joltreau
  2. Germán Bersalli
  3. Katrin Sommerfeld
  4. Anthony G. Patt
  5. J. Lilliestam

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