Implementing carbon tariffs : a fool's errand ?
Abstract
Some governments are considering taxes on imports based on carbon content from countries that have not introduced climate change policies. Such carbon border taxes appeal to domestic industries facing higher charges for their own carbon emissions. This research demonstrates that there are enormous practical difficulties surrounding such plans. Various policies are evaluated according to World Trade Organization compliance, administrative plausibility, help in meeting environmental goals, and ability to deal with domestic pressures. The steel industry is used as a case study in this analysis. All considered policies arguably fail to meet at least one of these constraints, bringing into question the plausibility that a carbon border tax can be practical policy.Download Info
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Paper provided by The World Bank in its series Policy Research Working Paper Series with number 5359.Length:
Date of creation: 01 Jul 2010
Date of revision:
Handle: RePEc:wbk:wbrwps:5359
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Related research
Keywords: Climate Change Mitigation and Green House Gases; Climate Change Economics; Carbon Policy and Trading; Environment and Energy Efficiency; Energy and Environment;Other versions of this item:
- Michael O. Moore, 2011. "Implementing Carbon Tariffs: A Fool’s Errand?," The World Economy, Wiley Blackwell, vol. 34(10), pages 1679-1702, October.
- Michael Owen Moore, 2010. "Implementing Carbon Tariffs: A Fool's Errand?," Working Papers 2010-02, The George Washington University, Institute for International Economic Policy.
- F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
- F18 - International Economics - - Trade - - - Trade and Environment
- H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies
References
References listed on IDEASPlease report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
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Citations
Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.Cited by:
- Michael Keen & Christos Kotsogiannis, 2012.
"Coordinating Climate and Trade Policies: Pareto Efficiency and the Role of Border Tax Adjustments,"
IMF Working Papers
12/289, International Monetary Fund.
- Michael Keen & Christos Kotsogiannis, 2011. "Coordinating Climate and Trade Policies: Pareto Efficiency and the Role of Border Tax Adjustments," CESifo Working Paper Series 3494, CESifo Group Munich.
- Michael Keen & Christos Kotsogiannis, 2011. "Coordinating Climate and Trade Policies: Pareto Efficiency and the Role of Border Tax Adjustments," Discussion Papers 1106, Exeter University, Department of Economics.
- Messerlin, Patrick A., 2010. "Climate change and trade policy : from mutual destruction to mutual support," Policy Research Working Paper Series 5378, The World Bank.
- Jaime de Melo, 2012.
"Trade in a 'Green Growth' Development Strategy Global Scale Issues and Challenges,"
Working Papers
2012.47, Fondazione Eni Enrico Mattei.
- de Melo, Jaime, 2012. "Trade in a'green growth'development strategy : global scale issues and challenges," Policy Research Working Paper Series 6236, The World Bank.
- Alessandro Antimiani & Valeria Costantini & Chiara Martini & Luca Salvatici, 2011. "Cooperative and non-cooperative solutions to carbon leakage," Departmental Working Papers of Economics - University 'Roma Tre' 0136, Department of Economics - University Roma Tre.
- Messerlin, Patrick, 2012. "Climate and trade policies: from mutual destruction to mutual support," Open Access publications from Sciences Po info:hdl:2441/faqom67ai2q, Sciences Po.
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