Border carbon adjustment in agriculture: theoretical thoughts

Alisa Spiegel, Julio G. Fournier Gabela, Claudia Heidecke, Mareike Söder, Florian Freund, Alexander Gocht and Martin Banse

No 317084, 61st Annual Conference, Berlin, Germany, September 22-24, 2021 from German Association of Agricultural Economists (GEWISOLA)

Abstract: Many national climate policies are already using or planning to implement different carbon pricing schemes aiming to reach climate mitigation target efficiently. Inadequate international cooperation, however, can lead to emission leakage. To prevent this, several concepts of border carbon adjustment (BCA) have been developed for the energy sector. Despite the significant role of agriculture in global greenhouse gas (GHG) emissions and ongoing debates on agri-food carbon pricing, to date, there is no concrete BCA proposal for the agricultural sector. Our qualitative research aims to derive alternative agri-food BCA designs discussing on potential bottlenecks and suggesting solutions, while hypothesizing on potential effects of a BCA on GHG emission, trade balance, land use, and welfare. We conclude with outlining quantitative model-based research required to assess alternative agri-food BCA designs and to test the derived hypotheses.

Keywords: Agricultural and Food Policy; International Relations/Trade (search for similar items in EconPapers)
Date: 2021-11-18
New Economics Papers: this item is included in nep-agr, nep-env and nep-int
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Persistent link: https://EconPapers.repec.org/RePEc:ags:gewi21:317084

DOI: 10.22004/ag.econ.317084

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