Border carbon adjustments: Should production or consumption be taxed?
Border Carbon Adjustments (BCAs) may play an important role in lowering the economic costs of greenhouse gas mitigation and in overcoming political-economy constraints on the use of carbon taxes or equivalent measures. A carbon tax plus a full BCA could deal with the competitiveness challenges arisi...
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| Formato: | Journal Article |
| Lenguaje: | Inglés |
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Cambridge University Press
2023
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| Acceso en línea: | https://hdl.handle.net/10568/129774 |
| _version_ | 1855526424901844992 |
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| author | Martin, Will |
| author_browse | Martin, Will |
| author_facet | Martin, Will |
| author_sort | Martin, Will |
| collection | Repository of Agricultural Research Outputs (CGSpace) |
| description | Border Carbon Adjustments (BCAs) may play an important role in lowering the economic costs of greenhouse gas mitigation and in overcoming political-economy constraints on the use of carbon taxes or equivalent measures. A carbon tax plus a full BCA could deal with the competitiveness challenges arising from carbon taxes by using the WTO's National Treatment principle to apply equal levies on domestic production and on imports, and by symmetrically rebating the carbon tax on exports in the manner of a value-added tax (VAT) export rebate. This approach would shift the base for carbon taxation from production to demand and potentially achieve substantial reductions in the cost of cutting emissions. It would avoid the massive measurement and compliance problems associated with BCAs based on foreign emission intensities. By contrast, import-only BCAs distort prices of importables relative to exportables; create divisive trade conflicts and deterioration in the terms of trade for developing countries; and likely require development of complex sets of import preferences. |
| format | Journal Article |
| id | CGSpace129774 |
| institution | CGIAR Consortium |
| language | Inglés |
| publishDate | 2023 |
| publishDateRange | 2023 |
| publishDateSort | 2023 |
| publisher | Cambridge University Press |
| publisherStr | Cambridge University Press |
| record_format | dspace |
| spelling | CGSpace1297742025-11-12T04:47:17Z Border carbon adjustments: Should production or consumption be taxed? Martin, Will carbon energy consumption energy generation taxes greenhouse gases global warming climate change value added tax wto Border Carbon Adjustments (BCAs) may play an important role in lowering the economic costs of greenhouse gas mitigation and in overcoming political-economy constraints on the use of carbon taxes or equivalent measures. A carbon tax plus a full BCA could deal with the competitiveness challenges arising from carbon taxes by using the WTO's National Treatment principle to apply equal levies on domestic production and on imports, and by symmetrically rebating the carbon tax on exports in the manner of a value-added tax (VAT) export rebate. This approach would shift the base for carbon taxation from production to demand and potentially achieve substantial reductions in the cost of cutting emissions. It would avoid the massive measurement and compliance problems associated with BCAs based on foreign emission intensities. By contrast, import-only BCAs distort prices of importables relative to exportables; create divisive trade conflicts and deterioration in the terms of trade for developing countries; and likely require development of complex sets of import preferences. 2023-10 2023-03-27T15:34:24Z 2023-03-27T15:34:24Z Journal Article https://hdl.handle.net/10568/129774 en https://cgspace.cgiar.org/handle/10568/128707 Open Access application/pdf Cambridge University Press Martin, Will. 2023. Border carbon adjustments: Should production or consumption be taxed? World Trade Review 22(3-4): 395-407. https://doi.org/10.1017/S1474745623000113 |
| spellingShingle | carbon energy consumption energy generation taxes greenhouse gases global warming climate change value added tax wto Martin, Will Border carbon adjustments: Should production or consumption be taxed? |
| title | Border carbon adjustments: Should production or consumption be taxed? |
| title_full | Border carbon adjustments: Should production or consumption be taxed? |
| title_fullStr | Border carbon adjustments: Should production or consumption be taxed? |
| title_full_unstemmed | Border carbon adjustments: Should production or consumption be taxed? |
| title_short | Border carbon adjustments: Should production or consumption be taxed? |
| title_sort | border carbon adjustments should production or consumption be taxed |
| topic | carbon energy consumption energy generation taxes greenhouse gases global warming climate change value added tax wto |
| url | https://hdl.handle.net/10568/129774 |
| work_keys_str_mv | AT martinwill bordercarbonadjustmentsshouldproductionorconsumptionbetaxed |