Trade effects of alternative carbon border-tax schemes
In industrial countries contemplating emissions reductions, there have been calls for additional border taxes on imports from countries with lower carbon prices. A key factor affecting the impact of any border taxes is whether they are based on the carbon content of imports or the carbon content of domestic production. Our quantitative estimates suggest that the former action when applied to all merchandise imports would address competitiveness and environmental concerns in high-income countries but with serious consequences for trading partners. For example, China’s manufacturing exports would decline by one-fifth and those of all low- and middle-income countries by 15 %; the corresponding declines in real income would be 3.7 and 2.4 %. Border tax adjustment based on the carbon content in domestic production would broadly address the competitiveness concerns of producers in high-income countries and less adversely affect developing country trade. Copyright Kiel Institute 2013
If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Volume (Year): 149 (2013)
Issue (Month): 3 (September)
|Contact details of provider:|| Web page: http://www.springer.com|
Postal:Kiellinie 66, D-24105 Kiel
Phone: +49 431 8814-1
Fax: +49 431 8814528
Web page: https://www.ifw-kiel.de/
More information through EDIRC
|Order Information:||Web: http://www.springer.com/economics/international+economics/journal/10290/PS2|
References listed on IDEAS
Please 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.:
- Michael Grubb & Karsten Neuhoff, 2006.
"Allocation and competitiveness in the EU emissions trading scheme: policy overview,"
Taylor & Francis Journals, vol. 6(1), pages 7-30, January.
- Grubb, M. & Neuhoff, K., 2006. "Allocation and competitiveness in the EU emissions trading scheme: policy overview," Cambridge Working Papers in Economics 0645, Faculty of Economics, University of Cambridge.
- Joseph E. Aldy & William A. Pizer, 2015.
"The Competitiveness Impacts of Climate Change Mitigation Policies,"
Journal of the Association of Environmental and Resource Economists,
University of Chicago Press, vol. 2(4), pages 565-595.
- Aldy, Joseph E. & Pizer, William A., 2011. "The Competitiveness Impacts of Climate Change Mitigation Policies," Working Paper Series rwp11-047, Harvard University, John F. Kennedy School of Government.
- Joseph E. Aldy & William A. Pizer, 2011. "The Competitiveness Impacts of Climate Change Mitigation Policies," NBER Working Papers 17705, National Bureau of Economic Research, Inc.
- Aldy, Joseph E. & Pizer, William A., 2015. "The Competitiveness Impacts of Climate Change Mitigation Policies," Working Paper Series rwp15-046, Harvard University, John F. Kennedy School of Government.
- Aldy, Joseph E. & Pizer, William A., 2014. "The Competitiveness Impacts of Climate Change Mitigation Policies," Working Paper Series rwp14-025, Harvard University, John F. Kennedy School of Government.
- Aldy, Joseph Edgar & Pizer, William, 2011. "The Competitiveness Impacts of Climate Change Mitigation Policies," Scholarly Articles 5688779, Harvard Kennedy School of Government.
- Ben Lockwood & John Whalley, 2010.
"Carbon-motivated Border Tax Adjustments: Old Wine in Green Bottles?,"
The World Economy,
Wiley Blackwell, vol. 33(6), pages 810-819, 06.
- Ben Lockwood & John Whalley, 2008. "Carbon Motivated Border Tax Adjustments: Old Wine in Green Bottles?," NBER Working Papers 14025, National Bureau of Economic Research, Inc.
- Atkinson, Giles & Hamilton, Kirk & Ruta, Giovanni & Van Der Mensbrugghe, Dominique, 2010. "Trade in'virtual carbon': empirical results and implications for policy," Policy Research Working Paper Series 5194, The World Bank.
- Yan Dong & John Whalley, 2009.
"How Large are the Impacts of Carbon Motivated Border Tax Adjustments?,"
University of Western Ontario, Economic Policy Research Institute Working Papers
20093, University of Western Ontario, Economic Policy Research Institute.
- Yan Dong & John Walley, 2012. "How Large Are The Impacts Of Carbon Motivated Border Tax Adjustments?," Climate Change Economics (CCE), World Scientific Publishing Co. Pte. Ltd., vol. 3(01), pages 1-28.
- Yan Dong & John Whalley, 2009. "How Large are the Impacts of Carbon Motivated Border Tax Adjustments," NBER Working Papers 15613, National Bureau of Economic Research, Inc.
- Bruno Lanz & Thomas F. Rutherford & John E. Tilton, 2013.
"Subglobal climate agreements and energy-intensive activities: An evaluation of carbon leakage in the copper industry,"
CER-ETH Economics working paper series
13/174, CER-ETH - Center of Economic Research (CER-ETH) at ETH Zurich.
- Bruno Lanz & Thomas F. Rutherford & John E. Tilton, 2013. "Subglobal Climate Agreements and Energy-intensive Activities: An Evaluation of Carbon Leakage in the Copper Industry," The World Economy, Wiley Blackwell, vol. 36(3), pages 254-279, 03.
- Bruno Lanz & Thomas F. Rutherford & John E. Tilton, 2011. "Subglobal Climate Agreements and Energy-Intensive Activities: Is there a Carbon Haven for Copper?," Working Papers 1103, Massachusetts Institute of Technology, Center for Energy and Environmental Policy Research.
- Grossman, Gene M., 1980. "Border tax adjustments: Do they distort trade?," Journal of International Economics, Elsevier, vol. 10(1), pages 117-128, February.
- Peterson, Everett B. & Schleich, Joachim, 2007. "Economic and environmental effects of border tax adjustments," Working Papers "Sustainability and Innovation" S1/2007, Fraunhofer Institute for Systems and Innovation Research (ISI).
- Gary Clyde Hufbauer & Steve Charnovitz & Jisun Kim, 2009. "Global Warming and the World Trading System," Peterson Institute Press: All Books, Peterson Institute for International Economics, number 4280, January.
- Jean-Marc Burniaux & Jean Chateau & Romain Duval, 2013.
"Is there a case for carbon-based border tax adjustment? An applied general equilibrium analysis,"
Taylor & Francis Journals, vol. 45(16), pages 2231-2240, June.
- Jean-Marc Burniaux & Jean Château & Romain Duval, 2010. "Is there a Case for Carbon-Based Border Tax Adjustment?: An Applied General Equilibrium Analysis," OECD Economics Department Working Papers 794, OECD Publishing.
- Philippe Quirion & Damien Demailly, 2006. "Leakage from climate policies and border tax adjustment:lessons from a geographic model of the cement industry," CIRED Working Papers halshs-00009337, HAL.
- Nancy Birdsall & Arvind Subramanian, 2009. "Energy Needs and Efficiency, Not Emissions: Re-framing the Climate Change Narrative," Working Papers 187, Center for Global Development.
- Alain Bernard & Marc Vielle, 2008. "GEMINI-E3, a general equilibrium model of international–national interactions between economy, energy and the environment," Computational Management Science, Springer, vol. 5(3), pages 173-206, May.
- Rutherford, Thomas F. & Tarr, David G., 2008.
"Poverty effects of Russia's WTO accession: Modeling "real" households with endogenous productivity effects,"
Journal of International Economics,
Elsevier, vol. 75(1), pages 131-150, May.
- Thomas F. Rutherford & David G. Tarr, 2014. "Poverty effects of Russia's WTO accession: Modeling “real” households with endogenous productivity effects," World Scientific Book Chapters, in: APPLIED TRADE POLICY MODELING IN 16 COUNTRIES Insights and Impacts from World Bank CGE Based Projects, chapter 12, pages 287-306 World Scientific Publishing Co. Pte. Ltd..
- Shoven, John B & Whalley, John, 1984. "Applied General-Equilibrium Models of Taxation and International Trade: An Introduction and Survey," Journal of Economic Literature, American Economic Association, vol. 22(3), pages 1007-1051, September.
- Ho, Mun S. & Morgenstern, Richard & Shih, Jhih-Shyang, 2008. "Impact of Carbon Price Policies on U.S. Industry," Discussion Papers dp-08-37, Resources For the Future.
When requesting a correction, please mention this item's handle: RePEc:spr:weltar:v:149:y:2013:i:3:p:587-609. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Sonal Shukla)or (Rebekah McClure)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.