Naegele, Helene; Zaklan, Aleksandar - 2017
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 …