Taxing imports from regions which are not subject to climate policy and subsidi-zing exports into these regions have recently been proposed to address presu-med negative effects of the EU Emissions Trading Scheme (EU ETS) on in-dustry competitiveness and carbon leakage. This paper analyzes the...

With coming into force of the Directive 2003/87/EU of the European Parliament and of the Council greenhouse gas emission allowance trading within the community (EU ETS) has begun in 2005. Emission trading is a flexible instrument to abate emissions within the framework of the Kyoto-Protocol. Up...