Two main approaches have been implemented in regional CO2 markets to address competitiveness and carbon leakage: output …

tends to have a detrimental effect on domestic competitiveness, and it leads to an increase in carbon emissions abroad … problems. However, BTA protects domestic competitiveness more effectively, while IET achieves a greater reduction in foreign … competitiveness of noncovered sectors are negative. These two effects constitute the central trade-off in the implementation of both …

equilibrium model for the global economy we quantify how these protective measures affect competitiveness of US EITE industries …. We find that while protective measures can attenuate adverse competitiveness impacts measured in terms of common sector …-specific competitiveness indicators, they run the risk of making US emission reduction much more costly than uniform emission pricing stand …