Does the European Emission Trading System Cause Carbon Leakage?
J.N. Kuin (TU Delft - Technology, Policy and Management)
Enno Schröder (TU Delft - Economics of Technology and Innovation)
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Abstract
This Master's thesis investigates the impact of the European Emission Trading System (EU ETS) on Carbon Leakage. It uses regression analysis of panel data to find out whether there is a link between the EU allowance price and trade flows. The study furthermore provides extensive recommendations to policymakers regarding potential improvement of the EU ETS and the overall competitiveness of European Industry.