The implementation of the European Union’s (EU) Green Deal to reduce emissions by 2030 and to achieve climate neutrality by 2050 will have an impact on the EU’s trade policy and on its trade relations with its non-EU partners. With the ongoing decarbonisation process of European economic...

This paper investigates the impact of carbon pricing on the economy, with a focus on European carbon taxes and the carbon market. Our analysis reveals three key findings. First, while both policies have successfully reduced emissions, the economic costs of the European carbon market are larger...