Arbeitspapier
Fair, optimal or detrimental? Environmental vs. strategic use of border carbon adjustment
We carry out a detailed sensitivity analysis of border carbon adjustment (rates) by applying a global Computable General Equilibrium (CGE) GTAP7-based model. We find different incentives for the regions in the climate coalition to raise carbon-based border tax rates (BTAX) above the standard rate that mimics an equalisation of carbon prices across regions. Herein, the strategic use of BTAX (the manipulation of the terms of trade) is stronger for all coalition regions than the environmental use (the reduction of carbon emissions abroad). Higher BTAX can reduce carbon leakage but with a declining marginal effect. Furthermore, we find different incentives for regions outside the coalition to oppose high BTAX rates: Russia and the other energy exporters would oppose it, while the Low-Income Countries would not because of benefits from the trade diversion effect. Thus, BTAX encourages the former to join the coalition, while compensating transfers are necessary to encourage the other (developing) countries including China and India.
- Sprache
-
Englisch
- Erschienen in
-
Series: Kiel Working Paper ; No. 1792
- Klassifikation
-
Wirtschaft
Trade Policy; International Trade Organizations
Trade and Environment
- Thema
-
climate policy
border tax adjustment
leakage
trade diversion
coalitions
general equilibrium model
- Ereignis
-
Geistige Schöpfung
- (wer)
-
Weitzel, Matthias
Hübler, Michael
Peterson, Sonja
- Ereignis
-
Veröffentlichung
- (wer)
-
Kiel Institute for the World Economy (IfW)
- (wo)
-
Kiel
- (wann)
-
2012
- Handle
- Letzte Aktualisierung
-
10.03.2025, 11:43 MEZ
Datenpartner
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.
Objekttyp
- Arbeitspapier
Beteiligte
- Weitzel, Matthias
- Hübler, Michael
- Peterson, Sonja
- Kiel Institute for the World Economy (IfW)
Entstanden
- 2012
Ähnliche Objekte (12)
Border carbon adjustment: Not a very promising climate policy instrument
Klimaschäden: Ausgleich fair, Vermeidung fehlt
Technischer Fortschritt im DART-Modell
Uncertainty and economic analysis of climate change : a survey of approaches and findings
Die wahren Kosten der Atomkraft: Kernkraftwerke
Helfen EU-Klimazölle, um China und die USA stärker in die Verantwortung zu nehmen?
Atomausstieg: Atomkraft auf Dauer keine Lösung
Clash between national and EU climate policies: The German climate levy as a remedy?
The contribution of economics to the analysis of climate change and uncertainty: a survey of approaches and findings
Efficient abatement in separated carbon markets: A theoretical and quantitative analysis of the EU emissions trading scheme
Monitoring, accounting and enforcement in emissions trading regimes
Potential impacts of water scarcity on the world economy
Border carbon adjustment: Not a very promising climate policy instrument
Klimaschäden: Ausgleich fair, Vermeidung fehlt
Technischer Fortschritt im DART-Modell
Uncertainty and economic analysis of climate change : a survey of approaches and findings
Die wahren Kosten der Atomkraft: Kernkraftwerke
Helfen EU-Klimazölle, um China und die USA stärker in die Verantwortung zu nehmen?
Atomausstieg: Atomkraft auf Dauer keine Lösung
Clash between national and EU climate policies: The German climate levy as a remedy?
The contribution of economics to the analysis of climate change and uncertainty: a survey of approaches and findings
Efficient abatement in separated carbon markets: A theoretical and quantitative analysis of the EU emissions trading scheme
Monitoring, accounting and enforcement in emissions trading regimes
Potential impacts of water scarcity on the world economy
Border carbon adjustment: Not a very promising climate policy instrument
Klimaschäden: Ausgleich fair, Vermeidung fehlt
Technischer Fortschritt im DART-Modell
Uncertainty and economic analysis of climate change : a survey of approaches and findings
Die wahren Kosten der Atomkraft: Kernkraftwerke
Helfen EU-Klimazölle, um China und die USA stärker in die Verantwortung zu nehmen?
Atomausstieg: Atomkraft auf Dauer keine Lösung
Clash between national and EU climate policies: The German climate levy as a remedy?
The contribution of economics to the analysis of climate change and uncertainty: a survey of approaches and findings
Efficient abatement in separated carbon markets: A theoretical and quantitative analysis of the EU emissions trading scheme
Monitoring, accounting and enforcement in emissions trading regimes