Carbon at the Gate: Evidence from the Transitional Phase of the EU’s CBAM
To prevent carbon leakage and level the playing field between EU and foreign producers, the EU’s Carbon Border Adjustment Mechanism (CBAM) entered its transitional phase in October 2023. Despite concerns abroad that CBAM would impose regulatory burdens, no study has causally estimated its impact on trade flows. Using monthly import data (Jan 2017– Dec 2024), I estimate a difference-in differences
