Pricing carbon emissions from a jurisdiction could harm the competitiveness of local firms, causing the leakage of emissions and economic activity to other regions. Past research concentrated on national carbon prices, but the impacts of subnational carbon prices could be more severe due to the...

To estimate the potential impact of California's cap-and-trade program on the state's energy-intensive, trade-exposed manufacturing industries, this paper uses confidential plant-level Census data to model the effect of historical energy prices on plant-level output, employment, and value added,...