Knowledge Tree
carbon leakage
Facts (11)
Sources
Research & Publications – Home - MIT Sites sites.mit.edu 3 facts
claimThe European Union's 'Carbon Border Adjustment Mechanism' (CBAM), part of the European Green Deal, aims to extend carbon pricing to imported goods to limit carbon leakage.
claimThe European Union's Carbon Border Adjustment Mechanism (CBAM) faces significant concerns regarding export-related carbon leakage.
referenceThe article 'Supporting the Transition to Climate-Neutral Production: An Evaluation Under the Agreement on Subsidies and Countervailing Measures' analyzes three specific support schemes: (i) free allocation under emissions trading systems for operators at risk of carbon leakage; (ii) the combination of a charge on carbon-intensive materials with free allocation; and (iii) carbon contracts for difference, where governments cover the incremental costs of climate-neutral production relative to conventional processes.
Designing Carbon Pricing Policies Across the Globe link.springer.com 3 facts
claimThe literature on border carbon adjustment (BCA/CBAM) was initiated by concerns regarding carbon leakage, as documented by Hoel (1996).
referenceKruse-Andersen and Sørensen (2021) analyzed optimal unilateral climate policy, specifically examining the impacts of carbon leakage at both the extensive and intensive margins.
claimHigh carbon prices carry substantial risks of carbon leakage, competitiveness losses, and firm relocation, according to Nachtigall (2019).
The potential land requirements and related land use change ... nature.com Feb 3, 2021 1 fact
referenceGonzález-Eguino et al. (2017) investigated industrial and terrestrial carbon leakage under climate policy fragmentation.
Navigating market and political uncertainties in the age of energy ... brookings.edu Mar 11, 2025 1 fact
claimCarbon leakage is defined as the movement of investment to lower-cost countries with less stringent climate standards.
Carbon Pricing as a Climate Policy Instrument: Global Lessons ... journal.idscipub.com Jul 31, 2025 1 fact
claimCarbon pricing outcomes vary significantly: industries with high resource dependence face cost burdens, low-income households are disproportionately affected, and developing countries struggle with institutional weaknesses and carbon leakage.
The Power of Change: Innovation for Development and Deployment ... nationalacademies.org 1 fact
claimSafety concerns regarding permanent geologic storage of CO2 include the potential for carbon leakage, loss of well integrity, induced seismicity, and potential human health or environmental impacts.
Carbon pricing policy instruments need a radical redesign and ... unepfi.org Jun 22, 2022 1 fact
claimPoorly designed carbon pricing instruments can cause carbon leakage across borders and disproportionately negative impacts on lower-income earners if revenues are poorly distributed.