Legal Implications of the Use of Export Taxes in Addressing Carbon Leakage: Competing Border Adjustment Measures

Kateryna Holzer and Baris Karapinar

Papers from World Trade Institute

Abstract: The paper explores the interface between legal and welfare implications of unilateral border carbon adjustment measures taken by importing countries and carbon export taxes imposed by exporting countries. It argues that carbon export taxes will be an inevitable part of the future climate change regime in the abscence of a multilateral agreement. Hence, it discusses the role of export taxes in helping countries address competitiveness and carbon leakage concerns, and WTO law and economic issues arising from the use of climate policy-related export restrictions.

Date: 2012-04-30
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