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Open AccessFeature PaperArticle

Analysis of Carbon Leakage under Phase III of the EU Emissions Trading System: Trading Patterns in the Cement and Aluminium Sectors

Oeko-Institut, 10179 Berlin, Germany
Fraunhofer Institute for Systems and Innovation Research ISI, 76139 Karlsruhe, Germany
Copernicus Institute of Sustainable Development, Utrecht University, Heidelberglaan 2, 3584 CS Utrecht, The Netherlands
Author to whom correspondence should be addressed.
Energies 2018, 11(5), 1231;
Received: 15 February 2018 / Revised: 16 April 2018 / Accepted: 7 May 2018 / Published: 11 May 2018
(This article belongs to the Special Issue Lessons from the Evaluation of Existing Emission Trading Schemes)
This paper contributes to the existing literature on carbon leakage by using a range of different publically available datasets in order to develop a systematic approach for identifying whether products are potentially at risk of carbon leakage. The scope of this paper focuses on the cement and aluminium sectors at different levels of product aggregation to demonstrate the variation in trade patterns that exist over time. The evolution of EU-28 trade flows with third countries for these sectors between 2000 and 2016 enables the selection of key third countries that could warrant further investigation via more quantitative techniques in order to determine the impact of carbon pricing on trade patterns. This systematic approach could be replicated for additional sectors in further research as part of a more regular assessment to provide evidence of carbon leakage for European industry. No evidence of carbon leakage is found in this paper for clinker and cement, while there is no conclusive evidence for unwrought non-alloyed aluminium and aluminium products. View Full-Text
Keywords: carbon leakage; emission trading; aluminium; cement; trade carbon leakage; emission trading; aluminium; cement; trade
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Healy, S.; Schumacher, K.; Eichhammer, W. Analysis of Carbon Leakage under Phase III of the EU Emissions Trading System: Trading Patterns in the Cement and Aluminium Sectors. Energies 2018, 11, 1231.

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