Trade Liberalization and Carbon Leakage

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Energy Conservation More Effective With Rebound Policy (2011, background): “…countries with less stringent environmental regulation) and associated changes in foreign trade flows cause initial, direct reductions in GHG emissions to be compensated by increases in GHG emissions elsewhere (Felder and Rutherford 1993; Babiker 2001; Paltsev 2001; Kuik and Gerlagh 2003).”
Border adjustment for European emissions trading: Competitiveness and carbon leakage (2010, background): “Most CGE analyses emphasize the effect of climate policies on world demand for primary fuels (mainly oil and coal) that is likely to partially shift from regulated to nonregulated countries (Kuik and Gerlagh, 2003; Paltsev, 2001).”
The emission cost of international sourcing: using structural decomposition analysis to calculate the contribution of international sourcing to CO2-emission growth (2016, background): “Trade dissociates production and consumption, thereby allowing the transfer of the emission burden of production from one country to another (Felder and Rutherford, 1993; Kuik and Gerlagh, 2003).”
Carbon leakage from unilateral Environmental Tax Reforms in Europe, 1995–2005 (2007, methodology): “Kuik and Gerlagh (2003) using the similar GTAP-E model conclude that for Annex I Kyoto-style action ‘carbon leakage is modest, confirming an extensive set of earlier studies’.”