Global Welfare Implications of Carbon Border Taxes. CEPS Working Document No. 315, 6 July 2009
(2009) Global Welfare Implications of Carbon Border Taxes. CEPS Working Document No. 315, 6 July 2009.
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Abstract
This paper presents a simple, basic model to compute the welfare consequences of the introduction of a tariff on the CO2 content of imported goods in a country that already imposes a domestic carbon tax. The main finding is that the introduction of a carbon import tariff increases global welfare (and not just the welfare of the importing country) if there is no (or insufficient) pricing of carbon abroad. A higher domestic price of carbon justifies a higher import tariff. Moreover, a higher relative intensity of carbon abroad increases the desirability of high import tariff imposed by the home country because a border tax shifts production to the importing country, which in this case leads to lower environmental costs.
| Item Type: | Working Paper |
|---|---|
| Remote Resource Image: |  |
| Public Domain: | No |
| Refereed: | No |
| Status: | Published |
| Authors, Individual: | Gros, Daniel. |
| Title: | Global Welfare Implications of Carbon Border Taxes. CEPS Working Document No. 315, 6 July 2009 |
| Language: | English |
| Journals and Series: | Series > Centre for European Policy Studies (Brussels) > CEPS Working Documents |
| Pages: | 19 |
| Month: | July |
| Year: | 2009 |
| Subjects: | EU policies and themes > Policies & related activities > environmental policy |
| Alternative Locations: | http://shop.ceps.eu/BookDetail.php?item_id=1869 |
| ID Code: | 11333 |
| Deposited By: | Wilkin, Phil |
| Deposited On: | 27 July 2009 |
