Designing Effective Carbon Border Adjustment with Minimal Information Requirements. Theory and Empirics

Alessia Campolmi, Harald Fadinger, Chiara Forlati, Sabine Stillger and Ulrich Wagner
Additional contact information
Chiara Forlati: University of Southampton
Sabine Stillger: University of Mannheim

No WP2024/19, Single Market Economics Papers from Directorate-General for Internal Market, Industry, Entrepreneurship and SMEs (European Commission), Chief Economist Team

Abstract: This paper proposes a Leakage Border Adjustment Mechanism (LBAM) as a mechanism to tackle carbon emissions and avoid leakages. It requires no knowledge of embedded emissions and can be applied to all tradable sectors. It implements import tariffs (and, possibly, export subsidies) that sterilize the changes in imports (and exports) induced by a higher EU carbon price.

Pages: 67 pages
Date: 2024-02
New Economics Papers: this item is included in nep-ene, nep-env, nep-int and nep-inv
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https://ec.europa.eu/docsroom/documents/58294/atta ... en/renditions/native (application/pdf)

Related works:
Working Paper: Designing Effective Carbon Border Adjustment with Minimal Information Requirements. Theory and Empirics (2024)
Working Paper: Designing Effective Carbon Border Adjustment with Minimal Information Requirements. Theory and Empirics (2023)
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Persistent link: https://EconPapers.repec.org/RePEc:bda:wpsmep:wp2024/19

DOI: 10.2873/336612

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