Quirion, Philippe; Rozenberg, Julie; Sassi, Olivier; … - Fondazione ENI Enrico Mattei (FEEM) - 2011
Most CO2 abatement policies reduce the demand for fossil fuels and therefore their price in international markets. If these policies are not global, this price decrease raises emissions in countries without CO2 abatement policies, generating “carbon leakage”. On the other hand, if the...