---
title: Does the EU ETS cause carbon leakage? A global supply-chain perspective
url: https://www.ml-quant.com/papers/repec/jau-wpaper-2026-10/
site: ML-Quant (https://www.ml-quant.com)
updated: 2026-10-30
license: Summaries CC BY 4.0; links go to the original sources
index: https://www.ml-quant.com/llms.txt
identifier: RePEc:jau:wpaper:2026/10
source_url: https://econpapers.repec.org/RePEc:jau:wpaper:2026/10
featured: 2026-10-30
citations: unknown
topic: Asset Pricing & Factors
---


# 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.

- Source: https://econpapers.repec.org/RePEc:jau:wpaper:2026/10
- Identifier: RePEc:jau:wpaper:2026/10
- Released: 2026-10-21
- First featured: Quant Letter No. 137 (2026-10-30): https://www.ml-quant.com/issues/2026-10-30/
- Citations (Semantic Scholar): not tracked
- Published in: not yet
- Topic: Asset Pricing & Factors
- Authors: Lewoye Bantie Baylie, Anna Maria Ferragina, Inmaculada Martínez-Zarzoso, Stefano Iandolo

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