Kaushal, Kevin R.; Lindholt, Lars; Yonezawa, Hidemichi - 2023
Unilateral CO2 emission reduction can lead to carbon leakage, such as relocation of power-intensive and trade …-exposed industries. In the EU emission trading system, these industries are also subjected to higher cost of electricity due to emission … pricing in this sector. As a result, the industries in the EU receive free emission allowances to mitigate carbon leakage as …