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Border Adjustments on Energy Taxes: A Possible Tool for European Policymakers in Implementing the Kyoto Protocol?

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  • Frank Biermann
  • Rainer Brohm

Abstract

This article analyses whether the European Union could lawfully enact border adjustments for energy taxes vis-à-vis other industrialised countries that are not party to the 1997 Kyoto Protocol to the UN Framework Convention on Climate Change without violating world trade law, in particular the General Agreement on Tariffs and Trade (GATT) and the Agreement on Subsidies and Countervailing Measures (SCM Agreement). We outline the rationale for border adjustments for energy taxes and conclude that despite remaining ambiguity in both the legal provisions and the pertinent case law, energy-related border tax adjustments are under certain circumstances compatible with world trade law. In diesem Artikel wird untersucht, ob die Europäische Union bestehende und künftig drohende Wettbewerbsnachteile infolge nationaler Energiesteuern mit Hilfe von Grenzausgleichssteuern (Border Tax Adjustments, BTA) gegenüber Nichtunterstützerstaaten des Kyoto-Protokolls von 1997 neutralisieren kann, ohne in Konflikt mit dem geltenden Welthandelsrecht zu geraten, insbesondere mit dem Allgemeinen Zoll- und Handelsabkommen (General Agreement on Tariffs and Trade, GATT) und dem Subventionsabkommen (Agreement on Subsidies and Countervailing Measures, SCM Agreement). Unsere Analyse kommt zu dem Ergebnis, dass trotz verbleibender Unklarheiten im Vertragsrecht und der Rechtsprechung der Grenzausgleich von Energiesteuern unter bestimmten Voraussetzungen im Einklang mit dem Welthandelsrecht steht.

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  • Frank Biermann & Rainer Brohm, 2005. "Border Adjustments on Energy Taxes: A Possible Tool for European Policymakers in Implementing the Kyoto Protocol?," Vierteljahrshefte zur Wirtschaftsforschung / Quarterly Journal of Economic Research, DIW Berlin, German Institute for Economic Research, vol. 74(2), pages 249-258.
    • Handle: RePEc:diw:diwvjh:74-2-11
    DOI: 10.3790/vjh.74.2.249
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    References listed on IDEAS

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    1. Michael Faure & Joyeeta Gupta & Andries Nentjes (ed.), 2003. "Climate Change and the Kyoto Protocol," Books, Edward Elgar Publishing, number 2968.
    2. Thomas L. Brewer, 2004. "The WTO and the Kyoto Protocol: interaction issues," Climate Policy, Taylor & Francis Journals, vol. 4(1), pages 3-12, March.
    3. Drã–Ge, Susanne & Trabold, Harald & Biermann, Frank & Bã–Hm, Frã‰Dã‰Ric & Brohm, Rainer, 2004. "National climate change policies and WTO law: a case study of Germany's new policies," World Trade Review, Cambridge University Press, vol. 3(2), pages 161-187, July.
    4. Carraro, Carlo & Buchner, Barbara & Cersosimo, Igor, 2002. "On the Consequences of the US Withdrawal from the Kyoto/Bonn Protocol," CEPR Discussion Papers 3239, C.E.P.R. Discussion Papers.
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    Cited by:

    1. Susanne Dröge & Claudia Kemfert, 2005. "Trade Policy to Control Climate Change: Does the Stick Beat the Carrot?," Vierteljahrshefte zur Wirtschaftsforschung / Quarterly Journal of Economic Research, DIW Berlin, German Institute for Economic Research, vol. 74(2), pages 235-248.
    2. Stibniati Atmadja & Louis Verchot, 2012. "A review of the state of research, policies and strategies in addressing leakage from reducing emissions from deforestation and forest degradation (REDD+)," Mitigation and Adaptation Strategies for Global Change, Springer, vol. 17(3), pages 311-336, March.

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