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 … than perfectly competitive, particularly when both emissions regulations and advanced tech-nologies are new. In this …, upstream subsidies reduce abatement technology prices, and hence also emissions leakage. Moreover, as opposed to downstream …