| Title |
Measuring the Cost of the European Union's Carbon Border Adjustment Mechanism on Moroccan Exports |
| ID_Doc |
63395 |
| Authors |
Morchid, W; Haddad, EA; Savard, L |
| Title |
Measuring the Cost of the European Union's Carbon Border Adjustment Mechanism on Moroccan Exports |
| Year |
2024 |
| Published |
Sustainability, 16, 12 |
| DOI |
10.3390/su16124967 |
| Abstract |
The 'Fit for 55' policy package was presented in the European Commission's Green Deal framework, comprising a set of proposals to improve existing energy and climate legislation. Among its main proposals was a revision of the European Union's Emission Trading System to expand its sectoral coverage. Anticipating the possible loss of competitiveness with carbon pricing within the EU-which may lead to 'carbon leakage'-a carbon border adjustment mechanism (CBAM) was included in the package. This scheme takes the form of an export tax levied by the European Union on some goods manufactured in non-carbon-taxing countries. In this paper, we provide a first-order estimate of the potential impact of CBAM on Morocco's exports using an input-output approach. Our main findings suggest that the scheme would yield a carbon bill ranging from USD 20 to 34 million annually to Moroccan exporters in its initial phase. Morocco can mitigate such economic losses by instituting a national Emission Trading System, a tax reform, or speeding up the decarbonization of its economy. |
| Author Keywords |
European Green Deal; carbon leakage; carbon border adjustment mechanism; Morocco; input-output approach; C64; D57; F18; F14; H23 |
| Index Keywords |
Index Keywords |
| Document Type |
Other |
| Open Access |
Open Access |
| Source |
Science Citation Index Expanded (SCI-EXPANDED); Social Science Citation Index (SSCI) |
| EID |
WOS:001256366100001 |
| WoS Category |
Green & Sustainable Science & Technology; Environmental Sciences; Environmental Studies |
| Research Area |
Science & Technology - Other Topics; Environmental Sciences & Ecology |
| PDF |
https://www.mdpi.com/2071-1050/16/12/4967/pdf?version=1718091224
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