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Searching for carbon leaks in multinational companies

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  • Antoine Dechezlepr�tre
  • Caterina Gennaioli
  • Ralf Martin
  • Mirabelle Mu�ls

Abstract

Does climate change policy cause companies to shift the location of production, thereby creating carbon leakage? We examine the impact of the European Union Emissions Trading System (EU ETS) on the geographical distribution of carbon emissions within multinational companies based on data from the Carbon Disclosure Project for the period 2007- 2009. Our data includes regional emissions of 435 companies, of which 47 are subject to EU ETS regulation. We find no evidence that the EU ETS has induced a displacement of carbon emissions from Europe towards the rest of the world. Our results suggest that claims that the EU ETS would cause carbon leakage might have been exaggerated.

Suggested Citation

  • Antoine Dechezlepr�tre & Caterina Gennaioli & Ralf Martin & Mirabelle Mu�ls, 2014. "Searching for carbon leaks in multinational companies," GRI Working Papers 165, Grantham Research Institute on Climate Change and the Environment.
  • Handle: RePEc:lsg:lsgwps:wp165
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    Cited by:

    1. Stefano F. Verde & Christoph Graf & Thijs Jong and Claudio Marcantonini, 2016. "Installation entries and exits in the EU ETS industrial sector," RSCAS Working Papers 2016/19, European University Institute.
    2. Naegele, Helene & Zaklan, Aleksandar, 2019. "Does the EU ETS cause carbon leakage in European manufacturing?," Journal of Environmental Economics and Management, Elsevier, vol. 93(C), pages 125-147.
    3. Aleksandar Zaklan, 2021. "Coase and Cap-and-Trade: Evidence on the Independence Property from the European Carbon Market," Discussion Papers of DIW Berlin 1925, DIW Berlin, German Institute for Economic Research.
    4. Svetlana V. Doroshenko & Anna D. Mingaleva, 2020. "Carbon Exchanges: European Experience in Developing the Mechanism of Emission Permit Trading," Finansovyj žhurnal — Financial Journal, Financial Research Institute, Moscow 127006, Russia, issue 4, pages 52-68, August.
    5. Damien Dussaux & Francesco Vona & Antoine Dechezleprêtre, 2020. "Carbon Offshoring: Evidence from French Manufacturing Companies," Sciences Po publications 23/2020, Sciences Po.
    6. Aleksandar Zaklan, 2020. "Coase and Cap-and-Trade: Evidence on the Independence Property from the European Electricity Sector," Discussion Papers of DIW Berlin 1850, DIW Berlin, German Institute for Economic Research.

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    More about this item

    JEL classification:

    • D22 - Microeconomics - - Production and Organizations - - - Firm Behavior: Empirical Analysis
    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth
    • Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy

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