Variation in living standards across Europe, especially in income, has decreased over the last few decades, but the last recession brought convergence to a halt. This paper asks, first, whether sigma-convergence is found when other dimensions of inequality are taken into account, and second,...

Carbon leakage provides an efficiency argument for unilateral climate policy to differentiate emission prices in favor of emission-intensive and trade-exposed sectors. At the same time, differential emission pricing can be (mis-)used as a beggar-thy-neighbor policy to exploit terms of trade....