Does unilateral climate change policy cause companies to shift the location of production, thereby creating carbon leakage? In this paper, the authors analyse the effect of the European Union Emissions Trading System (EU ETS) on the geographical distribution of carbon emissions of multinational companies.

Countries should set targets to increase public investment in low-carbon research and development (R&D) slowly and steadily beyond 2020, according to a report published by the Grantham Research Institute on Climate Change and the Environment at London School of Economics and Political Science.