How trade policy can support the climate agenda

Michael Jakob, Stavros Afionis, Max Åhman, Angelo Antoci, Marlene Arens, Fernando Ascensão, Harro van Asselt, Nicolai Baumert, Simone Borghesi, Claire Brunel, Justin Caron, Aaron Cosbey, Susanne Droege, Alecia Evans, Gianluca Iannucci, Magnus Jiborn, Astrid Kander, Viktoras Kulionis, Arik Levinson, Jaime de Melo, Tom Moerenhout, Alessandro Monti, Maria Panezi, Philippe Quirion, Lutz Sager, Marco Sakai, Juan Sesmero, Mauro Sodini, Jean-Marc Solleder, Cleo Verkuijl, Valentin Vogl, Leonie Wenz and Sven Willner
Additional contact information
Michael Jakob: MCC - Mercator Research Institute on Global Commons and Climate Change - PIK - Potsdam Institute for Climate Impact Research
Stavros Afionis: Cardiff University, University of Leeds
Max Åhman: Lund University
Marlene Arens: Lund University
Fernando Ascensão: cE3c - Centre for Ecology - Evolution and Environmental Changes - ULISBOA - Universidade de Lisboa = University of Lisbon = Université de Lisbonne
Harro van Asselt: University of Eastern Finland, Universiteit Utrecht / Utrecht University [Utrecht]
Nicolai Baumert: Lund University
Simone Borghesi: EUI - European University Institute - Institut Universitaire Européen, UNISI - Università degli Studi di Siena = University of Siena
Justin Caron: HEC Montréal - HEC Montréal
Aaron Cosbey: IISD - International Institute for Sustainable Development
Susanne Droege: Stiftung Wissenschaft und Politik
Alecia Evans: Purdue University [West Lafayette]
Gianluca Iannucci: UniFI - Università degli Studi di Firenze = University of Florence = Université de Florence
Magnus Jiborn: Lund University
Astrid Kander: Lund University
Viktoras Kulionis: ETH Zürich - Eidgenössische Technische Hochschule - Swiss Federal Institute of Technology [Zürich]
Tom Moerenhout: Columbia University [New York]
Alessandro Monti: UCPH - University of Copenhagen = Københavns Universitet
Maria Panezi: UNB - University of New Brunswick
Marco Sakai: University of York [York, UK]
Juan Sesmero: Purdue University [West Lafayette]
Mauro Sodini: UniPi - University of Pisa [Italy] = Università di Pisa [Italia] = Université de Pise [Italie], VSB - Technical University of Ostrava [Ostrava]
Cleo Verkuijl: FERDI - Fondation pour les Etudes et Recherches sur le Développement International
Valentin Vogl: Lund University
Leonie Wenz: MCC - Mercator Research Institute on Global Commons and Climate Change - PIK - Potsdam Institute for Climate Impact Research
Sven Willner: PIK - Potsdam Institute for Climate Impact Research

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Abstract: Economic analysis has produced ample insights on how international trade and climate policy interact (1). Trade presents both opportunities and obstacles, and invites the question of how domestic climate policies can be effective in a global economy integrated through international trade. Particularly problematic is the potential relocation of production to regions with low climate standards. Measures to level the playing field, such as border carbon adjustments (BCAs), may be justified for specific emissions-intensive and trade-exposed sectors but need to be well-targeted, carefully navigating tensions that can arise between the desire to respect global trade rules and the need to elaborate and implement effective national climate policies. The conformity of specific trade measures with international trade and climate change law is not entirely clear. Yet, clarity is needed to ensure that the industry actors affected will find the rules predictable and be able to adhere to them.

Date: 2022-06-24
New Economics Papers: this item is included in nep-agr, nep-ene, nep-env, nep-int and nep-res
Note: View the original document on HAL open archive server: https://hal.science/hal-04466107v1
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Citations: View citations in EconPapers (2)

Published in Science, 2022, 376 (6600), pp.1401-1403. ⟨10.1126/science.abo4207⟩

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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-04466107

DOI: 10.1126/science.abo4207

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