carbon leakage and the competitiveness of domestic industries
Carbon leakage refers to the phenomenon where strict emissions regulations in one country lead to an increase in greenhouse gas emissions in another country. This occurs when industries in the stricter country face higher costs due to emissions control measures, causing them to relocate their production to other countries with weaker regulations. The competitiveness of domestic industries refers to their ability to compete with foreign industries in terms of costs, quality, and market share.
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