IDEAS home Printed from https://ideas.repec.org/p/ags/gewi21/317084.html
   My bibliography  Save this paper

Border carbon adjustment in agriculture: theoretical thoughts

Author

Listed:
  • Spiegel, Alisa
  • Fournier Gabela, Julio G.
  • Heidecke, Claudia
  • Söder, Mareike
  • Freund, Florian
  • Gocht, Alexander
  • Banse, Martin

Abstract

Many national climate policies are already using or planning to implement different carbon pricing schemes aiming to reach climate mitigation target efficiently. Inadequate international cooperation, however, can lead to emission leakage. To prevent this, several concepts of border carbon adjustment (BCA) have been developed for the energy sector. Despite the significant role of agriculture in global greenhouse gas (GHG) emissions and ongoing debates on agri-food carbon pricing, to date, there is no concrete BCA proposal for the agricultural sector. Our qualitative research aims to derive alternative agri-food BCA designs discussing on potential bottlenecks and suggesting solutions, while hypothesizing on potential effects of a BCA on GHG emission, trade balance, land use, and welfare. We conclude with outlining quantitative model-based research required to assess alternative agri-food BCA designs and to test the derived hypotheses.

Suggested Citation

  • Spiegel, Alisa & Fournier Gabela, Julio G. & Heidecke, Claudia & Söder, Mareike & Freund, Florian & Gocht, Alexander & Banse, Martin, 2021. "Border carbon adjustment in agriculture: theoretical thoughts," 61st Annual Conference, Berlin, Germany, September 22-24, 2021 317084, German Association of Agricultural Economists (GEWISOLA).
    • Handle: RePEc:ags:gewi21:317084
    DOI: 10.22004/ag.econ.317084
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/317084/files/178-Spiegel_c.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.317084?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Auerbach, Alan J, 1997. "The Future of Fundamental Tax Reform," American Economic Review, American Economic Association, vol. 87(2), pages 143-146, May.
    2. Gren, Ing-Marie & Höglind, Lisa & Jansson, Torbjörn, 2021. "Refunding of a climate tax on food consumption in Sweden," Food Policy, Elsevier, vol. 100(C).
    3. Susanne Droege & Carolyn Fischer, 2020. "Pricing Carbon at the Border: Key Questions for the EU," ifo DICE Report, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 18(01), pages 30-34, April.
    4. William Nordhaus, 2015. "Climate Clubs: Overcoming Free-Riding in International Climate Policy," American Economic Review, American Economic Association, vol. 105(4), pages 1339-1370, April.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Garnadt, Niklas & Grimm, Veronika & Reuter, Wolf Heinrich, 2020. "Carbon adjustment mechanisms: Empirics, design and caveats," Working Papers 11/2020, German Council of Economic Experts / Sachverständigenrat zur Begutachtung der gesamtwirtschaftlichen Entwicklung.
    2. Balint, T. & Lamperti, F. & Mandel, A. & Napoletano, M. & Roventini, A. & Sapio, A., 2017. "Complexity and the Economics of Climate Change: A Survey and a Look Forward," Ecological Economics, Elsevier, vol. 138(C), pages 252-265.
    3. Gregory Casey & Oded Galor, 2016. "Is economic growth compatible with reductions in carbon emissions? Investigating the impacts of diminished population growth," Working Papers 2016-8, Brown University, Department of Economics.
    4. Hongbo Duan & Gupeng Zhang & Shouyang Wang & Ying Fan, 2018. "Balancing China’s climate damage risk against emission control costs," Mitigation and Adaptation Strategies for Global Change, Springer, vol. 23(3), pages 387-403, March.
    5. Effrosyni Diamantoudi & Eftichios Sartzetakis & Stefania Strantza, 2018. "International Environmental Agreements and Trading Blocks - Can issue linkage enhance cooperation?," Discussion Paper Series 2018_07, Department of Economics, University of Macedonia, revised Jun 2018.
    6. David Klenert & Franziska Funke & Linus Mattauch & Brian O’Callaghan, 2020. "Five Lessons from COVID-19 for Advancing Climate Change Mitigation," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 76(4), pages 751-778, August.
    7. Emanuel Kohlscheen & Richhild Moessner & Előd Takáts, 2021. "Growth, coal and carbon emissions: economic overheating and climate change," BIS Working Papers 937, Bank for International Settlements.
    8. Martin Zapf & Hermann Pengg & Christian Weindl, 2019. "How to Comply with the Paris Agreement Temperature Goal: Global Carbon Pricing According to Carbon Budgets," Energies, MDPI, vol. 12(15), pages 1-20, August.
    9. Laurence Kotlikoff & Felix Kubler & Andrey Polbin & Simon Scheidegger, 2021. "Pareto-improving carbon-risk taxation [The environment and directed technical change]," Economic Policy, CEPR, CESifo, Sciences Po;CES;MSH, vol. 36(107), pages 551-589.
    10. Jaime DE MELO, 2016. "Moving on Towards a Workable Climate Regime," Working Papers P171, FERDI.
    11. Anne van Aaken & Janis Antonovics & Scott Barrett, 2016. "Collective Action to Avoid Catastrophe: When Countries Succeed, When They Fail, and Why," Global Policy, London School of Economics and Political Science, vol. 7, pages 45-55, May.
    12. Al Khourdajie, Alaa & Finus, Michael, 2020. "Measures to enhance the effectiveness of international climate agreements: The case of border carbon adjustments," European Economic Review, Elsevier, vol. 124(C).
    13. Halvor Briseid Storrøsten & Christoph Böhringer & Knut Einar Rosendahl, 2015. "Smart hedging against carbon leakage," Discussion Papers 822, Statistics Norway, Research Department.
    14. Langenmayr Dominika & Mittermaier Ferdinand, 2021. "Nachhaltiges Wirtschaften, nachhaltig finanziert: Herausforderungen für die Politik in den 2020er Jahren," Perspektiven der Wirtschaftspolitik, De Gruyter, vol. 22(3), pages 176-190, September.
    15. Philipp Hauber & Stormy-Annika Mildner & Galina Kolev & Jürgen Matthes & Sonja Peterson & Reimund Schwarze & Christiane Lemke & Martin, Thunert & Laura von Daniels & Josef Braml & Johannes Varwick & D, 2021. "The US under Joe Biden: U-Turn or “America First Light”?," ifo Schnelldienst, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 74(01), pages 03-37, January.
    16. Antoine Mandel & Solmaria Halleck Vega & Dan-Xia Wang, 2020. "The contribution of technological diffusion to climate change mitigation: a network-based approach," Climatic Change, Springer, vol. 160(4), pages 609-620, June.
    17. Alan J. Auerbach, 2006. "The Choice Between Income and Consumption Taxes: A Primer," NBER Working Papers 12307, National Bureau of Economic Research, Inc.
    18. Wenwen Zhang & Shichun Xu & Zhengxia He & Basil Sharp & Bin Zhao & Shuxiao Wang, 2019. "Impacts of U.S. Carbon Tariffs on China’s Foreign Trade and Social Welfare," Sustainability, MDPI, vol. 11(19), pages 1-21, September.
    19. repec:hal:spmain:info:hdl:2441/6d7es28iae9pjoil7092hs41h3 is not listed on IDEAS
    20. Laurence J. Kotlikoff & Andrey V. ZUBAREV & Andrey POLBIN, 2021. "Will the Paris accord accelerate climate change [Ускоряет Ли Парижское Соглашение Изменение Климата?]," Ekonomicheskaya Politika / Economic Policy, Russian Presidential Academy of National Economy and Public Administration, vol. 1, pages 8-37, February.
    21. Steven D. Baker & Burton Hollifield & Emilio Osambela, 2022. "Asset Prices and Portfolios with Externalities [Pricedetermination in the EU ETS market: theory and econometric analysis with market fundamentals]," Review of Finance, European Finance Association, vol. 26(6), pages 1433-1468.

    More about this item

    Keywords

    Agricultural and Food Policy; International Relations/Trade;

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:gewi21:317084. See general information about how to correct material in RePEc.

    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 CitEc recognized a bibliographic reference but did not link an item in RePEc 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 RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/gewisea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.