Analysis On the empirical content of carbon leakage criteria in the EU Emissions Trading Scheme

  title={Analysis On the empirical content of carbon leakage criteria in the EU Emissions Trading Scheme},
  author={Ralf Martin and Mirabelle Mu{\^u}ls and Laure B. de Preux and Ulrich J. Wagner},
a r t i c l e i n f o The EU Emissions Trading Scheme continues to exempt industries deemed at risk of carbon leakage from permit auctions. Carbon leakage risk is established based on the carbon intensity and trade exposure of each 4-digit industry. Using a novel measure of carbon leakage risk obtained in interviews with almost 400 managers at regulated firms in six countries, we show that carbon intensity is strongly correlated with leakage risk whereas overall trade exposure is not. In spite… CONTINUE READING


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