Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/316405 
Authors: 
Year of Publication: 
2025
Series/Report no.: 
IDOS Discussion Paper No. 10/2025
Publisher: 
German Institute of Development and Sustainability (IDOS), Bonn
Abstract: 
This paper examines carbon leakage through supply chain recalibration in response to European carbon policies. Using input-output data and a high-frequency identification approach for carbon policy shocks, this paper investigates whether stringent carbon regulations in Europe affect the imports of carbon-intensive inputs from major emerging economies lacking similar policies. The findings reveal a temporary increase in the rate of change of imports from emerging countries relative to all inputs in the carbon-intensive sectors following carbon policy shocks, with effects peaking after two years before dissipating. While not directly quantifying emissions transfer, this study suggests some evidence of short-term input substitution patterns consistent with carbon leakage through international supply chains.
Subjects: 
trade & investment
climate change
Persistent Identifier of the first edition: 
ISBN: 
978-3-96021-255-3
Creative Commons License: 
cc-by Logo
Document Type: 
Working Paper

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