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 …

In 2005, the EU introduced an emissions trading system in order to pursue its Kyoto obligations. This instrument gives … on the national allocation plans as submitted to and approved by the EU. We find that, if the NAP is combined with a …

might be considered to reform the EU Emissions Trading Scheme (EU ETS). In this paper, we have decided to focus on three … for the carbon costs incurred on basic materials embodied in products. Finally, under the third model, the EU ETS would be … complemented with a climate contribution charged for materials sold in the European Union (EU) at the product benchmark level …

, both in the EU and beyond. Second, the paper presents an analysis of the provisions in WTO law that would apply to product …