| Title | Alternative carbon border adjustment mechanisms in the European Union and international responses: Aggregate and within-coalition results |
|---|---|
| ID_Doc | 63693 |
| Authors | Clora, F; Yu, WS; Corong, E |
| Title | Alternative carbon border adjustment mechanisms in the European Union and international responses: Aggregate and within-coalition results |
| Year | 2023 |
| Published | |
| Abstract | The European Union (EU) recently declared its intention to implement a carbon border adjustment mechanism (CBAM) to address carbon leakage and competitiveness concerns associated with elevated climate ambitions in its Green Deal. Current literature points to uncertainties regarding the CBAM's effectiveness and compatibility with international trade rules. This study numerically evaluates how alternative EU CBAM designs under various international reactions affect global and regional GHG emissions, outputs and trade flows. Our modeling results confirm substantial carbon leakages and output reductions in the EU's emissionsintensive trade-exposed (EITE) sectors when implementing the Green Deal. We find that the design of the CBAM matters: while a "non-discriminatory" CBAM based on the EU's own scope 1 emission intensities fails to effectively reduce leakages, an 'aggressive' CBAM based on exporters' scope 1 & 2 emission intensities can achieve such goal (albeit with potentially high implementation cost). International retaliations by non-EU countries can only partially offset the EU's gains from the 'aggressive' CBAM, while their cooperation can result in smaller losses to the EU EITE sectors and lower leakages. Finally, the CBAM cannot change within-EU imbalances in the EITE sectors, as several EU members lose EITE outputs consistently in all scenarios with and without retaliations. |
| https://doi.org/10.1016/j.enpol.2023.113454 |
Similar Articles
| ID | Score | Article |
|---|---|---|
63968
|
Mörsdorf, G A simple fix for carbon leakage? Assessing the environmental effectiveness of the EU carbon border adjustment(2022) | |
| 64181
|
Espa, I Reconciling The Climate/Industrial Interplay Of Cbams: What Role For The Wto?(2022) | |
| 65033
|
Pató, Z; Mezosi, A; Szabó, L Is border carbon adjustment the right tool for the power sector?(2022)Climate Policy, 22.0, 4 | |
| 63856
|
Smith, ID; Overland, I; Szulecki, K The EU's CBAM and Its 'Significant Others': Three Perspectives on the Political Fallout from Europe's Unilateral Climate Policy Initiative(2024)Jcms-Journal Of Common Market Studies, 62, 2 | |
| 63345
|
Eicke, L; Weko, S; Apergi, M; Marian, A Pulling up the carbon ladder? Decarbonization, dependence, and third-country risks from the European carbon border adjustment mechanism(2021) | |
| 63613
|
Sabyrbekov, R; Overland, I Small and large friends of the EU's carbon border adjustment mechanism: Which non-EU countries are likely to support it?(2024) | |
| 64380
|
Szulecki, K; Overland, I; Smith, ID The European Union's CBAM as a de facto Climate Club: The Governance Challenges(2022) | |
| 63070
|
Evans, S; Mehling, MA; Ritz, RA; Sammon, P Border carbon adjustments and industrial competitiveness in a European Green Deal(2021)Climate Policy, 21, 3 | |
| 63321
|
Mehling, MA; Ritz, RA From theory to practice: determining emissions in traded goods under a border carbon adjustment(2023)Oxford Review Of Economic Policy, 39, 1 | |
| 64130
|
Fragkos, P; Fragkiadakis, K; Paroussos, L Reducing the Decarbonisation Cost Burden for EU Energy-Intensive Industries(2021)Energies, 14, 1 |