Given that the carbon price in the EU Emissions Trading System is only around 5€/tCO2 while consensus about a more … stringent EU climate policy is very unlikely in the near future, we explore the potential scope and optimal design of additional … national climate policies in the current EU policy framework. In particular, we suggest to implement a type of carbon price …

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 …