Ernst, Anne; Hinterlang, Natascha; Mahle, Alexander; … - 2022
In a dynamic, three-region environmental multi-sector general equilibrium model (called EMuSe), we find that carbon … medium to long run. A border adjustment mechanism mitigates but does not prevent carbon leakage, but it “protects” dirty … domestic production sectors in particular. From the perspective of a region that introduces carbon pricing, the downturn is …