The EU Emissions Trading System (EU ETS) leads to higher electricity prices and thus higher costs for electricity-intensive industries in the EU, reducing their competitiveness compared to those in non-EU countries. This disparity may result in carbon leakage, where production shifts abroad,...

Döbbeling-Hildebrandt et al. (2024, DH2024) conduct a meta-analysis of the effectiveness of carbon pricing. DH2024's abstract concludes that 17 of 21 schemes evaluated in the literature produced substantial emissions reductions. A subsequent press release was headed: "Carbon pricing works"....