Fischer, Carolyn; Greaker, Mads; Rosendahl, Knut Einar - CESifo - 2014
emissions leakage, which hampers countries’ welfare. In order to limit leakage, governments consider supporting domestic trade … increase global abatement technology prices, reduce pollution abatement abroad and increase emission leakage. On the contrary …, upstream subsidies reduce abatement technology prices, and hence also emissions leakage. Moreover, as opposed to downstream …