HOW LARGE ARE THE IMPACTS OF CARBON MOTIVATED BORDER TAX ADJUSTMENTS?

Yan Dong () and John Walley ()
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John Walley: Department of Economics, Social Science Centre, University of Western Ontario, London, Ontario, N6A 5C2, Canada

Climate Change Economics (CCE), 2012, vol. 03, issue 01, 1-28

Abstract: This paper discusses the size of impact of carbon motivated border tax adjustments on world trade and welfare. We report numerical simulation results which suggest that impacts on welfare, trade, and emissions will likely be small. This is because proposed measures use carbon emissions in the importing country in producing goods similar to imports rather than carbon content in calculating the size of barriers. Moreover, because border adjustments involve both tariffs and export rebates, it is the differences in emissions intensity across sector rather than emissions level which matters. Where there is no difference in emissions intensities across sectors, Lerner symmetry holds for the border adjustment and no relative effects occur.

Keywords: Border tax adjustments; carbon emissions; carbon tariffs (search for similar items in EconPapers)
Date: 2012
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Citations: View citations in EconPapers (7)

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Working Paper: How Large are the Impacts of Carbon Motivated Border Tax Adjustments (2009)
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Persistent link: https://EconPapers.repec.org/RePEc:wsi:ccexxx:v:03:y:2012:i:01:n:s2010007812500017

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DOI: 10.1142/S2010007812500017

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