The Europe 2020 Strategy has identified the key goal of smart, more inclusive and sustainable growth. In this direction, redirecting firms' innovation activities towards ecological targets without hampering their competitiveness is of paramount importance. The double externality issue related to...

This literature review analyses the impacts of the EU ETS on competitiveness focussing on existing simulation studies. We have identified the choice of the reference scenario as the most critical issue for an appropriate analysis of the relevant literature. We find, however, that effects of the...