Border carbon adjustments: Should production or consumption be taxed?
This paper has been accepted for publication in World Trade Review and will appear in a revised form subject to input from the Journal’s editor. Users may use this material subject to the conditions of a CC-BY-NC-ND (Creative Commons Non-Commercial No-Derivatives License). Suggested citation for th...
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| Format: | Artículo preliminar |
| Language: | Inglés |
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International Food Policy Research Institute
2023
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| Online Access: | https://hdl.handle.net/10568/131477 |
| _version_ | 1855530946906816512 |
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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 | This paper has been accepted for publication in World Trade Review and will appear in a revised form subject to input from the Journal’s editor. Users may use this material subject to the conditions of a CC-BY-NC-ND (Creative Commons Non-Commercial No-Derivatives License).
Suggested citation for this article: Martin, W. (2023). ‘Border Carbon Adjustments: Should Production or Consumption be Taxed?’ World Trade Review 1–13. https://doi.org/10.1017/S1474745623000113
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 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 | Artículo preliminar |
| id | CGSpace131477 |
| institution | CGIAR Consortium |
| language | Inglés |
| publishDate | 2023 |
| publishDateRange | 2023 |
| publishDateSort | 2023 |
| publisher | International Food Policy Research Institute |
| publisherStr | International Food Policy Research Institute |
| record_format | dspace |
| spelling | CGSpace1314772025-12-02T21:16:26Z Border carbon adjustments: Should production or consumption be taxed? Martin, Will carbon taxes costs economics greenhouse gases policies domestic production emissions prices global warming imports exports trade developing countries value added tax wto This paper has been accepted for publication in World Trade Review and will appear in a revised form subject to input from the Journal’s editor. Users may use this material subject to the conditions of a CC-BY-NC-ND (Creative Commons Non-Commercial No-Derivatives License). Suggested citation for this article: Martin, W. (2023). ‘Border Carbon Adjustments: Should Production or Consumption be Taxed?’ World Trade Review 1–13. https://doi.org/10.1017/S1474745623000113 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 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. 2023-03-31 2023-08-08T09:33:10Z 2023-08-08T09:33:10Z Working Paper https://hdl.handle.net/10568/131477 en Open Access application/pdf International Food Policy Research Institute Martin, Will. 2023. Border carbon adjustments: Should production or consumption be taxed? IFPRI Discussion Paper 2177. Washington, DC: International Food Policy Research Institute (IFPRI). https://doi.org/10.2499/p15738coll2.136633. |
| spellingShingle | carbon taxes costs economics greenhouse gases policies domestic production emissions prices global warming imports exports trade developing countries 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 taxes costs economics greenhouse gases policies domestic production emissions prices global warming imports exports trade developing countries value added tax wto |
| url | https://hdl.handle.net/10568/131477 |
| work_keys_str_mv | AT martinwill bordercarbonadjustmentsshouldproductionorconsumptionbetaxed |