magnitude and distribution of abatement costs across EU countries vis-à-vis a comprehensive EU emission trading regime. We find … permit trade enhances the secondary terms-of-trade benefits to EU member countries with low marginal abatement costs at the … expense of the other EU member states. …

trading program. As the EU Emissions Trading Scheme (EU-ETS) covers only part of domestic carbon emissions, it implies a … hybrid environmental regulation scheme: Each EU Member State must specify additional domestic abatement policies for the … sectors that are not covered by the emissions trading scheme in order to meet its emissions budget under the EU Burden Sharing …