We analyze existing definitions of carbon leakage and propose a new rigorous one. This is then tested using computable general equilibrium analysis for unilateral carbon dioxide abatement programs in the European Union in 2020, adopted under the United Nations Framework Convention on Climate...

What is the effect of recent carbon price developments on domestic emissions and carbon leakage? This paper first develops a comprehensive plant-level carbon pricing dataset for key heavy industries at risk of carbon leakage, i.e. aluminium, cement and steel plants in 140 countries, drawing on...

We estimate the potential synergy between pollution and climate control in the U.S. and China, summarizing the results as emissions cross-elasticities of control. In both countries, ancillary carbon reductions resulting from SO2 and NOx control tend to rise with the increased stringency of...

In a parsimonious two-sector general equilibrium model, we challenge the widely-held tenet that within a cap-and-trade system renewable energy policies have no effect on carbon emissions. If the cap does not capture all sectors, we demonstrate that variations of a renewable energy subsidy change...

What has been done and what could be expected from China in combating global climate change is an issue of perennial concern at the international climate change negotiations. This article aims to address this very challenging issue from both economic and political perspectives. By analyzing the...

Carbon pricing policies worldwide are increasingly coupled with direct or indirect subsidies for emission-intensive and trade-exposed firms. We analyze the incentives created by novel forms of emissions intensity-based rebating (IBR) and contrast them with more common approaches like...

This paper integrates two lines of research: trade in global value chains and embodied emissions into a unified conceptual framework. This allows both value-added and emissions to be systematically traced at the country, sector, and bilateral levels through various production network routes. By...

Decisions of electricity suppliers on investments in low-carbon energy technologies like photovoltaic (PV) and carbon dioxide capture and storage (CCS) depend on the expected profits or surpluses that can be earned. For an assessment of the profitability of investments in PV (and other renewable...

Unilateral CO2 emission reduction can lead to carbon leakage, such as relocation of power-intensive and trade-exposed industries. In the EU emission trading system, these industries are also subjected to higher cost of electricity due to emission pricing in this sector. As a result, the...

Aim: This article aims to analyze the impact of China's trade with 78 major trading partners on Actual-Open Emission of CO2 (EAO) from 2000 to 2020 in light of the European Union's (EU) goal to reduce CO2 emissions by 20% by 2020 compared to 1990 levels. Research Methods: The research is based...