Searching for carbon leaks in multinational companies - Grantham Research Institute on climate change and the environment<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.lse.ac.uk\/granthaminstitute\/publication\/searching-for-carbon-leaks-in-multinational-companies-2\/\" \/>\n<meta property=\"og:locale\" content=\"en_GB\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Searching for carbon leaks in multinational companies - Grantham Research Institute on climate change and the environment\" \/>\n<meta property=\"og:description\" content=\"This paper examines whether the European Union Emissions Trading System (EU ETS) has led companies to shift the location of production, thereby creating carbon leakage.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.lse.ac.uk\/granthaminstitute\/publication\/searching-for-carbon-leaks-in-multinational-companies-2\/\" \/>\n<meta property=\"og:site_name\" content=\"Grantham Research Institute on climate change and the environment\" \/>\n<meta property=\"article:modified_time\" content=\"2024-08-19T13:27:19+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.lse.ac.uk\/granthaminstitute\/wp-content\/uploads\/2019\/08\/carbon_tax.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"414\" \/>\n\t<meta property=\"og:image:height\" content=\"250\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Estimated reading time\" \/>\n\t<meta name=\"twitter:data1\" content=\"1 minute\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/www.lse.ac.uk\\\/granthaminstitute\\\/publication\\\/searching-for-carbon-leaks-in-multinational-companies-2\\\/\",\"url\":\"https:\\\/\\\/www.lse.ac.uk\\\/granthaminstitute\\\/publication\\\/searching-for-carbon-leaks-in-multinational-companies-2\\\/\",\"name\":\"Searching for carbon leaks in multinational companies - Grantham Research Institute on climate change and the environment\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/www.lse.ac.uk\\\/granthaminstitute\\\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\\\/\\\/www.lse.ac.uk\\\/granthaminstitute\\\/publication\\\/searching-for-carbon-leaks-in-multinational-companies-2\\\/#primaryimage\"},\"image\":{\"@id\":\"https:\\\/\\\/www.lse.ac.uk\\\/granthaminstitute\\\/publication\\\/searching-for-carbon-leaks-in-multinational-companies-2\\\/#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/www.lse.ac.uk\\\/granthaminstitute\\\/wp-content\\\/uploads\\\/2019\\\/08\\\/carbon_tax.jpg\",\"datePublished\":\"2022-01-26T10:20:21+00:00\",\"dateModified\":\"2024-08-19T13:27:19+00:00\",\"breadcrumb\":{\"@id\":\"https:\\\/\\\/www.lse.ac.uk\\\/granthaminstitute\\\/publication\\\/searching-for-carbon-leaks-in-multinational-companies-2\\\/#breadcrumb\"},\"inLanguage\":\"en-GB\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\\\/\\\/www.lse.ac.uk\\\/granthaminstitute\\\/publication\\\/searching-for-carbon-leaks-in-multinational-companies-2\\\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-GB\",\"@id\":\"https:\\\/\\\/www.lse.ac.uk\\\/granthaminstitute\\\/publication\\\/searching-for-carbon-leaks-in-multinational-companies-2\\\/#primaryimage\",\"url\":\"https:\\\/\\\/www.lse.ac.uk\\\/granthaminstitute\\\/wp-content\\\/uploads\\\/2019\\\/08\\\/carbon_tax.jpg\",\"contentUrl\":\"https:\\\/\\\/www.lse.ac.uk\\\/granthaminstitute\\\/wp-content\\\/uploads\\\/2019\\\/08\\\/carbon_tax.jpg\",\"width\":414,\"height\":250,\"caption\":\"Clouds in the shape of CO2.\"},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\\\/\\\/www.lse.ac.uk\\\/granthaminstitute\\\/publication\\\/searching-for-carbon-leaks-in-multinational-companies-2\\\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\\\/\\\/www.lse.ac.uk\\\/granthaminstitute\\\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Publications\",\"item\":\"https:\\\/\\\/www.lse.ac.uk\\\/granthaminstitute\\\/?post_type=publication\"},{\"@type\":\"ListItem\",\"position\":3,\"name\":\"All research\",\"item\":\"https:\\\/\\\/www.lse.ac.uk\\\/granthaminstitute\\\/publication-type\\\/new-research\\\/\"},{\"@type\":\"ListItem\",\"position\":4,\"name\":\"Research article\",\"item\":\"https:\\\/\\\/www.lse.ac.uk\\\/granthaminstitute\\\/publication-type\\\/research-articles\\\/\"},{\"@type\":\"ListItem\",\"position\":5,\"name\":\"Searching for carbon leaks in multinational companies\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\\\/\\\/www.lse.ac.uk\\\/granthaminstitute\\\/#website\",\"url\":\"https:\\\/\\\/www.lse.ac.uk\\\/granthaminstitute\\\/\",\"name\":\"Grantham Research Institute on climate change and the environment\",\"description\":\"The Grantham Research Institute at LSE carries out world-class research on climate change and the environment.\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\\\/\\\/www.lse.ac.uk\\\/granthaminstitute\\\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-GB\"}]}<\/script>\n","yoast_head_json":{"title":"Searching for carbon leaks in multinational companies - Grantham Research Institute on climate change and the environment","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.lse.ac.uk\/granthaminstitute\/publication\/searching-for-carbon-leaks-in-multinational-companies-2\/","og_locale":"en_GB","og_type":"article","og_title":"Searching for carbon leaks in multinational companies - Grantham Research Institute on climate change and the environment","og_description":"This paper examines whether the European Union Emissions Trading System (EU ETS) has led companies to shift the location of production, thereby creating carbon leakage.","og_url":"https:\/\/www.lse.ac.uk\/granthaminstitute\/publication\/searching-for-carbon-leaks-in-multinational-companies-2\/","og_site_name":"Grantham Research Institute on climate change and the environment","article_modified_time":"2024-08-19T13:27:19+00:00","og_image":[{"width":414,"height":250,"url":"https:\/\/www.lse.ac.uk\/granthaminstitute\/wp-content\/uploads\/2019\/08\/carbon_tax.jpg","type":"image\/jpeg"}],"twitter_card":"summary_large_image","twitter_misc":{"Estimated reading time":"1 minute"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"WebPage","@id":"https:\/\/www.lse.ac.uk\/granthaminstitute\/publication\/searching-for-carbon-leaks-in-multinational-companies-2\/","url":"https:\/\/www.lse.ac.uk\/granthaminstitute\/publication\/searching-for-carbon-leaks-in-multinational-companies-2\/","name":"Searching for carbon leaks in multinational companies - Grantham Research Institute on climate change and the environment","isPartOf":{"@id":"https:\/\/www.lse.ac.uk\/granthaminstitute\/#website"},"primaryImageOfPage":{"@id":"https:\/\/www.lse.ac.uk\/granthaminstitute\/publication\/searching-for-carbon-leaks-in-multinational-companies-2\/#primaryimage"},"image":{"@id":"https:\/\/www.lse.ac.uk\/granthaminstitute\/publication\/searching-for-carbon-leaks-in-multinational-companies-2\/#primaryimage"},"thumbnailUrl":"https:\/\/www.lse.ac.uk\/granthaminstitute\/wp-content\/uploads\/2019\/08\/carbon_tax.jpg","datePublished":"2022-01-26T10:20:21+00:00","dateModified":"2024-08-19T13:27:19+00:00","breadcrumb":{"@id":"https:\/\/www.lse.ac.uk\/granthaminstitute\/publication\/searching-for-carbon-leaks-in-multinational-companies-2\/#breadcrumb"},"inLanguage":"en-GB","potentialAction":[{"@type":"ReadAction","target":["https:\/\/www.lse.ac.uk\/granthaminstitute\/publication\/searching-for-carbon-leaks-in-multinational-companies-2\/"]}]},{"@type":"ImageObject","inLanguage":"en-GB","@id":"https:\/\/www.lse.ac.uk\/granthaminstitute\/publication\/searching-for-carbon-leaks-in-multinational-companies-2\/#primaryimage","url":"https:\/\/www.lse.ac.uk\/granthaminstitute\/wp-content\/uploads\/2019\/08\/carbon_tax.jpg","contentUrl":"https:\/\/www.lse.ac.uk\/granthaminstitute\/wp-content\/uploads\/2019\/08\/carbon_tax.jpg","width":414,"height":250,"caption":"Clouds in the shape of CO2."},{"@type":"BreadcrumbList","@id":"https:\/\/www.lse.ac.uk\/granthaminstitute\/publication\/searching-for-carbon-leaks-in-multinational-companies-2\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/www.lse.ac.uk\/granthaminstitute\/"},{"@type":"ListItem","position":2,"name":"Publications","item":"https:\/\/www.lse.ac.uk\/granthaminstitute\/?post_type=publication"},{"@type":"ListItem","position":3,"name":"All research","item":"https:\/\/www.lse.ac.uk\/granthaminstitute\/publication-type\/new-research\/"},{"@type":"ListItem","position":4,"name":"Research article","item":"https:\/\/www.lse.ac.uk\/granthaminstitute\/publication-type\/research-articles\/"},{"@type":"ListItem","position":5,"name":"Searching for carbon leaks in multinational companies"}]},{"@type":"WebSite","@id":"https:\/\/www.lse.ac.uk\/granthaminstitute\/#website","url":"https:\/\/www.lse.ac.uk\/granthaminstitute\/","name":"Grantham Research Institute on climate change and the environment","description":"The Grantham Research Institute at LSE carries out world-class research on climate change and the environment.","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/www.lse.ac.uk\/granthaminstitute\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-GB"}]}},"taxonomies":{"post_tag":["carbon leakage","carbon pricing","EU ETS"],"publication-type":["Research article"],"topic_area":["Policy evaluation"]},"featured_image_src":"https:\/\/www.lse.ac.uk\/granthaminstitute\/wp-content\/uploads\/2019\/08\/carbon_tax.jpg","_links":{"self":[{"href":"https:\/\/www.lse.ac.uk\/granthaminstitute\/wp-json\/wp\/v2\/publication\/58629","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.lse.ac.uk\/granthaminstitute\/wp-json\/wp\/v2\/publication"}],"about":[{"href":"https:\/\/www.lse.ac.uk\/granthaminstitute\/wp-json\/wp\/v2\/types\/publication"}],"author":[{"embeddable":true,"href":"https:\/\/www.lse.ac.uk\/granthaminstitute\/wp-json\/wp\/v2\/users\/12"}],"version-history":[{"count":3,"href":"https:\/\/www.lse.ac.uk\/granthaminstitute\/wp-json\/wp\/v2\/publication\/58629\/revisions"}],"predecessor-version":[{"id":58635,"href":"https:\/\/www.lse.ac.uk\/granthaminstitute\/wp-json\/wp\/v2\/publication\/58629\/revisions\/58635"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.lse.ac.uk\/granthaminstitute\/wp-json\/wp\/v2\/media\/46306"}],"wp:attachment":[{"href":"https:\/\/www.lse.ac.uk\/granthaminstitute\/wp-json\/wp\/v2\/media?parent=58629"}],"wp:term":[{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.lse.ac.uk\/granthaminstitute\/wp-json\/wp\/v2\/tags?post=58629"},{"taxonomy":"publication-type","embeddable":true,"href":"https:\/\/www.lse.ac.uk\/granthaminstitute\/wp-json\/wp\/v2\/publication-type?post=58629"},{"taxonomy":"topic_area","embeddable":true,"href":"https:\/\/www.lse.ac.uk\/granthaminstitute\/wp-json\/wp\/v2\/topic_area?post=58629"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}

{"id":58629,"date":"2022-01-26T10:20:21","date_gmt":"2022-01-26T10:20:21","guid":{"rendered":"https:\/\/www.lse.ac.uk\/granthaminstitute\/?post_type=publication&p=58629"},"modified":"2024-08-19T14:27:19","modified_gmt":"2024-08-19T13:27:19","slug":"searching-for-carbon-leaks-in-multinational-companies-2","status":"publish","type":"publication","link":"https:\/\/www.lse.ac.uk\/granthaminstitute\/publication\/searching-for-carbon-leaks-in-multinational-companies-2\/","title":{"rendered":"Searching for carbon leaks in multinational companies"},"content":{"rendered":"\n

Abstract<\/strong><\/p>\n\n\n\n

Does a unilateral climate change policy cause companies to shift the location of production, thereby creating carbon leakage? In this paper, we analyze the effect of the European Union Emissions Trading System (EU ETS) on the geographic distribution of carbon emissions by multinational companies. The empirical evidence is based on unique data for the period 2007–2014 from the Carbon Disclosure Project, which tracks the emissions of multinational businesses by geographic region within each company. Because they already operate from multiple locations, multinational firms should be the most prone to carbon leakage. Our data includes the regional emissions of 1,122 companies, of which 261 are subject to EU ETS regulation. We find no evidence that the EU ETS has led to a displacement of carbon emissions from Europe toward the rest of the world, including to countries with lax climate policies and within energy-intensive companies. A large number of robustness checks confirm this finding. Overall, the paper suggests that modest differences in carbon prices between countries do not induce carbon leakage.<\/p>\n\n\n\n

Antoine Dechezleprêtre, Caterina Gennaioli, Ralf Martin, Mirabelle Muûls, Thomas Stoerk, Searching for carbon leaks in multinational companies, Journal of Environmental Economics and Management<\/em>, Volume 112, 2022, 102601, ISSN 0095-0696, https:\/\/doi.org\/10.1016\/j.jeem.2021.102601.<\/strong><\/p>\n\n\n\n

An earlier working paper version of this research is available here<\/a><\/p>\n\n","protected":false},"excerpt":{"rendered":"\n