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How Carbon Border Adjustments Might Drive Global Climate Policy Momentum

Author

Listed:
  • Clausing, Kimberly
  • Elkerbout, Milan

    (Resources for the Future)

  • Nehrkorn, Katarina

    (Resources for the Future)

  • Wolfram, Catherine

    (Resources for the Future)

Abstract

The introduction of the European Union carbon border adjustment mechanism (CBAM) creates an important incentive for other countries to adopt carbon pricing. The authors examine this policy spillover effect, finding that countries throughout the world have increased their use of carbon pricing regimes as well as their interest in both carbon pricing and decarbonization, especially in the period since the EU focused on this policy tool. If more countries, including the United States, consider border adjustment regimes, this can strengthen such policy spillover effects. However, care should be taken to address the needs of lower-income economies and to avoid disguised protectionism.

Suggested Citation

  • Clausing, Kimberly & Elkerbout, Milan & Nehrkorn, Katarina & Wolfram, Catherine, 2024. "How Carbon Border Adjustments Might Drive Global Climate Policy Momentum," RFF Reports 24-20, Resources for the Future.
    • Handle: RePEc:rff:report:rp-24-20
    as

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    File URL: https://www.rff.org/documents/4610/Report_24-20.pdf
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    References listed on IDEAS

    as
    1. Kimberly A. Clausing & Mary E. Lovely, 2024. "Why Trump's tariff proposals would harm working Americans," Policy Briefs PB24-1, Peterson Institute for International Economics.
    2. Kimberly A. Clausing, 2023. "The international tax agreement of 2021: Why it's needed, what it does, and what comes next?," Policy Briefs PB23-4, Peterson Institute for International Economics.
    3. Kimberly A. Clausing & Catherine Wolfram, 2023. "Carbon Border Adjustments, Climate Clubs, and Subsidy Races When Climate Policies Vary," Journal of Economic Perspectives, American Economic Association, vol. 37(3), pages 137-162, Summer.
    Full references (including those not matched with items on IDEAS)

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