Carbon leakage is one of the major issues facing policymakers today when designing environmental regulation. While the empirical and trade literature on carbon leakage is rich, much less is known about the implications of carbon leakage risk on optimal regulatory policies under asymmetric...

The European Commission’s (EC) proposed Carbon Border Adjustment Mechanism (CBAM) is meant to mirror the carbon price of the EU Emissions Trading System (EU ETS) for several imported goods. While the CBAM can rely on certain aspects of the EU ETS regarding its costs and compliance obligations,...

A broad consensus exists that carbon pricing is key for cost-effective emission reductions and that it must play a major role in driving the transition to a climate-neutral economy. However, despite significant progress in wider climate policy uptake in recent years, the vast majority of...

Carbon pricing at appropriate levels is critical in the response to climate change, but currently only a fifth of global emissions are priced. Successful carbon pricing in Asia can help jurisdictions in the region achieve their climate targets cost-effectively, spur investments into low-carbon...