Schmidt, Robert C.; Pollrich, Martin; Stiel, Caroline - 2013 - This version: February 14, 2013, preliminary and incomplete
The unilateral introduction of an emissions price can induce firms to relocate to other countries with less stringent … environmental regulation. However, firms may be able to reduce the emissions costs in their home country by investing into low … free allocation of permits if the emissions price arises within an emissions trading scheme. …