Alternative Designs for Tariffs on Embodied Carbon: A Global Cost-Effectiveness Analysis

Christoph Böhringer, Brita Bye, Taran Fæhn and Knut Einar Rosendahl
Additional contact information
Brita Bye: Statistics Norway, Oslo, Norway
Taran Fæhn: Statistics Norway, Oslo, Norway

No V-345-12, Working Papers from University of Oldenburg, Department of Economics

Abstract: In the absence of effective world-wide cooperation to curb global warming, import tariffs on embodied carbon have been proposed as a potential supplement to unilateral emissions pricing. We consider alternative designs for such tariffs, and analyze their effects on global welfare within a multi-region, multi-sector computable general equilibrium (CGE) model of global trade and energy. Our analysis suggests that the most cost-efficient policy could be region-specific tariffs on all products, based on direct plus electricity emissions. In the end, however, the potential cost savings through carbon tariffs must be weighed against the administrative costs as well as legal issues and political considerations.

Keywords: carbon leakage; embodied carbon; border tariffs (search for similar items in EconPapers)
JEL-codes: D61 H2 Q43 Q54 (search for similar items in EconPapers)
Pages: 36 pages
Date: 2012-06, Revised 2012-06
New Economics Papers: this item is included in nep-agr, nep-cmp, nep-ene and nep-env
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (48)

Published in Oldenburg Working Papers V-345-12

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http://www.vwl.uni-oldenburg.de/download/V-345-12.pdf First version, 2012 (application/pdf)

Related works:
Journal Article: Alternative designs for tariffs on embodied carbon: A global cost-effectiveness analysis (2012)
Working Paper: Alternative designs for tariffs on embodied carbon. A global cost-effectiveness analysis (2012)
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