climate policy addressing global externalities. The debate is particularly salient in Europe, where the EU Emissions … TradingSystem (EU ETS) covers emissions of many traded sectors. In a first step, we review how carbon leakage and the pollution … introduced by the EU ETS has caused carbon leakage in European manufacturing. We compute trade flows in embodied carbon and value …

greenhouse gas emissions, the EU Emissions Trading System (EU ETS). I analyze whether emissions of power producers regulated … under the EU ETS are independent from allowance allocations, leveraging a change in allocation policy for a difference …