One complement to domestic climate policies could be the regulation of carbon dioxide emissions arising during the production of imported products. Such ‘border carbon adjustments’ (BCAs) are said to have several benefits, but are also severely criticised. This Policy Brief highlights some weaknesses in the standard argumentation for BCAs. But there is an alternative argument for border carbon measures, based on the fact that countries expose each other to climate externalities.
Bruegel
Can Border Carbon Taxes Fit into the Global Trade Regime?
Popular Science
Reference
Horn, Henrik and André Sapir (2013). “Can Border Carbon Taxes Fit into the Global Trade Regime? ”. Policy Brief 2013/06. Bruegel.
Horn, Henrik and André Sapir (2013). “Can Border Carbon Taxes Fit into the Global Trade Regime? ”. Policy Brief 2013/06. Bruegel.
Authors
Henrik Horn, André Sapir