AbstractBorder measures to support unilateral climate policy efforts are being discussed in particular in the EU and the US. The EU has stipulated in its 2008 Directive on the European Emissions Trading Scheme (EU ETS) that in order to address the potential for carbon leakage, an inclusion of importers in the ETS could be a policy option amongst others. A climate policy adjustment at the border could take various forms and it could be motivated in three ways. First, trade measures could be announced as a “stick”, sanctioning those countries who are not willing to cooperate on climate protection. Second, the border adjustment for importers (making them pay at the border according to the carbon they emitted for producing the traded good) or a rebate for exporters for the CO
Can Degrowth Overcome the Leakage Problem of Unilateral Climate Policy