Disponible uniquement en anglais.
Par Marc Baudry et Romile Ronalde Gaylor Ravelonjanahary.
This paper investigates the international diffusion of carbon markets driven by the European Union Emissions Trading System (EU-ETS), the world’s first large-scale greenhouse gases emissions trading scheme. Using cross-sectional data from 161 countries and a spatial autoregressive Probit model with trade-based interdependencies, the paper examines whether EU trade partners are more likely to adopt domestic ETSs. Results indicate a positive and significant diffusion effect, consistent with a “Brussels Effect” based on experience feedback in carbon market governance. However, quantifying the effect reveals that it remains limited in magnitude. The implementation of the Carbon Border Adjustment Mechanism, which relies more on a de jure effect than a de facto effect, could change the situation.