Possible carbon adjustment policies: An overview
Rapport: The new European Commission has announced policies to reduce greenhouse gas emissions drastically. Reaching an ambitious target for a global good – the climate – would require a common price for carbon worldwide. This however clashes with the free-riding problem. Furthermore, unilateral policies are not efficient since they lead to carbon leakages and distort competitiveness. To tackle these issues, the European Union can rely on different policies. Firstly, a carbon pricing of imports can combined with an export rebate to constitute a ‘complete CBA’ (Carbon Border Adjustment) solution. Alternatively, a simple tariff at the border can compensate for differences in carbon prices between domestic and imported products. A consumption-based carbon taxation can al so be contemplated. Last, a uniform tariff on imports from countries not imposing (equivalent) carbon policies may help solving the free-riding problem.
Mots-clés JEL
Mots-clés
- Carbon Border Adjustment
- Climate Change
- International Trade
- Tariffs
Organisme(s) de délivrance
- European Parliament Directorate-General For External Policies
Numéro
- PE 603.500 – April 2020
Pages
- https://www.europarl.europa.eu/RegData/etudes/BRIE/2020/603500/EXPO_BRI(2020)603500_EN.pdf
URL de la notice HAL
Version
- 1