Global value chains (GVCs) play a crucial role in today's international trade. High value-added activities tend to cluster at the start and the end of GVCs, resulting in a U-shaped relationship across production steps known as the "smile curve". The distribution of CO2 emissions along the value...

While the EU-wide carbon price has already been adopted for the buildings and transport sectors with ETSê2, detailed analyses of the macroeconomic and distributional effects (both within and between countries) are scarce. We use the macroeconomic model ADAGIO to estimate the effects of EU-wide...