The Economic Effects of Border Measures in Subglobal Climate Agreements

Mustafa H. Babiker and Thomas Rutherford ()

The Energy Journal, 2005, vol. Volume 26, issue Number 4, 99-126

Abstract: The Kyoto agreement as originally drafted sought to mitigate anthropogenic greenhouse gas emissions through policy measures by most industrialized countries. It now seems likely that the agreement will be ratified and implemented without the participation of the United States. Any emissions abatement policies which have a measurable reduction in global emissions will induce changes in the terms of trade and comparative advantage and competitiveness To the extent that aggressive policies are undertaken to reduce CO2 emissions, there are likely to be strong calls in the Kyoto coalition for greenhouse-gas related border adjustment measures. This paper uses a multi-region, multi-commodity static general equilibrium model to quantify and assess the implications of such policies.

JEL-codes: F0 (search for similar items in EconPapers)
Date: 2005
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Citations: View citations in EconPapers (103)

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