This paper seeks to contribute to the debate on the carbon leakage phenomenon via the channel of competitiveness leakage by focusing on China’s bilateral trade. Based on a highly disaggregated database that includes 1,033 products and 117 trade partners from 1995 to 2012, we measure the...

While reducing industrial greenhouse gas (GHG) emissions is undoubtedly necessary to avoid an ecological disaster, political support for environmental regulation depends largely on its effectiveness and expected side-effects. A potential fallout often associated with environmental policies is a...

The present paper analyzes the impact of a climate coalition's border carbon adjustment on emissions from commodity production, welfare and the coalition size. The coalition implements border carbon adjustment to reduce carbon leakage and to improve its terms of trade, while the fringe abstains...