The purpose of the study is to model scenarios of technological innovations in the global passenger vehicle fleet, i.e., improvements in the energy economy of average regional vehicle fleets and blending of alternative fuels. This is to quantify the potential CO2 emission reductions that may...

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....