OECD Trade and Environment Working Papers

ISSN :
1816-6881 (en ligne)
DOI :
10.1787/18166881
Cacher / Voir l'abstract
Selected studies addressing the policy interface between trade and environment prepared for use within the OECD. They address such issues a liberalizing trade in goods that affect the environment, and trade in environmental goods and services.
 

Border Carbon Adjustment and International Trade

A Literature Review You or your institution have access to this content

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Auteur(s):
Madison Condon1, Ada Ignaciuk2
Author Affiliations
  • 1: Fletcher School of Law and Diplomacy, États-Unis

  • 2: OCDE, France

Date de publication
31 oct 2013
Bibliographic information
No:
2013/06
Pages
32
DOI
10.1787/5k3xn25b386c-en

Cacher / Voir l'abstract

An important source of political opposition to measures aimed at reducing emissions of greenhouse gases (GHGs) arises from concerns over their negative effects on the competitiveness of domestic firms, especially those that are energy-intensive and exposed to competition from foreign producers. Politicians and industry representatives alike fear that imports from countries without similar regulations can gain cost-of-production advantages over domestic goods. With many of the major economies of the world contemplating unilateral action to restrict their carbon emissions (while continuing to pursue co-ordinated multilateral action), the parallel concern of carbon leakage — whereby domestic reductions in emissions are partially or wholly counterbalanced by increased emissions elsewhere in the world — has also arisen. Various adjustments have been proposed, both in the academic literature and in draft climate legislation, including levying a border tax or requiring importers to surrender a quantity of carbon permits. Collectively, these kinds of adjustments are often referred to as border carbon adjustments, or BCAs. This note reviews the existing literature on BCAs and alternatives to BCAs and discusses what various researchers have concluded about the efficacy of BCAs from both a trade and an environmental perspective.
Mots-clés:
border carbon adjustment, border tax adjustment, trade and environment, climate change
Classification JEL:
  • F13: International Economics / Trade / Trade Policy; International Trade Organizations
  • F18: International Economics / Trade / Trade and Environment
  • F53: International Economics / International Relations and International Political Economy / International Agreements and Observance; International Organizations
  • F59: International Economics / International Relations and International Political Economy / Other
  • F64: International Economics / Globalization / Environment
  • H23: Public Economics / Taxation, Subsidies, and Revenue / Externalities; Redistributive Effects; Environmental Taxes and Subsidies
  • K32: Law and Economics / Other Substantive Areas of Law / Environmental, Health, and Safety Law
  • K33: Law and Economics / Other Substantive Areas of Law / International Law
  • Q48: Agricultural and Natural Resource Economics; Environmental and Ecological Economics / Energy / Government Policy
  • Q54: Agricultural and Natural Resource Economics; Environmental and Ecological Economics / Environmental Economics / Climate; Natural Disasters; Global Warming
  • Q58: Agricultural and Natural Resource Economics; Environmental and Ecological Economics / Environmental Economics / Government Policy