In the context of the environment, ‘Carbon Leakage’ is best described as:

1
expenses incurred by the nation for carbon emission trading.
2
increase in emissions outside a region as a direct result of the policy measures to cap emissions in the region.
3
excess of carbon emissions by a nation than the prescribed limit even after acquiring carbon credits from other nations.
4
tax evasion mechanism used by emitters to avoid paying carbon tax for greenhouse gas emissions.

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