Carbon leakage and competitiveness concerns are some of the main reasons why an international environmental agreement is lacking to fight climate change. Many studies discussed the adoption of a border tax adjustment (BTA) to allow countries that would like to implement a carbon tax to level the...

In the absence of an international environmental agreement (IEA) on climate change, a country may be reluctant to unilaterally implement environmental actions, as this may lead to the relocation of firms to other, lax-on-pollution countries. To avoid this problem, while still taking care of the...