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Addressing the Concerns About Carbon Leakage in the Implementation of Carbon Pricing Policies : a Focus on the Issue of Competitiveness

Rey, Florian ; Madiès, Thierry

In: Journal of Industrial and Business Economics, 2021, vol. 48, p. 53-75

This article investigates whether the implementation of asymmetric carbon pricing policies leads to carbon leakage. We first present the theoretical mechanisms behind carbon leakage. Secondly, we conduct a review of the existing empirical results of carbon leakage. We focus on the competitiveness channel and therefore rely on papers analysing the effects of asymmetric carbon prices on both...