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Does the EU ETS cause carbon leakage? A global supply-chain perspective

Causal evidence shows the EU emissions scheme drives an 8% rise in intermediate-goods imports from non-regulated countries, with 11% higher embodied carbon in manufacturing.

Featured in No. 137 on 30 Oct 2026 · 9 days after release

Event-study plot showing 8% rise in imports from non-ETS countries after EU ETS introduction
Figure 2: Event-study estimates of intermediate imports from non-ETS exporters into ETS- regulated importer sectors
Released
21 Oct 2026
First featured
No. 137 · 30 Oct 2026
Published in
Not yet, as far as Semantic Scholar knows
Fanfare
3 of 5
Identifier
RePEc:jau:wpaper:2026/10
Authors
Lewoye Bantie Baylie et al.

Citations and venue from Semantic Scholar (ODC-BY), refreshed weekly. Summary: Quant Letter (CC BY 4.0).

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