Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/105036
Authors: 
Böhringer, Christoph
Bye, Brita
Fæhn, Taran
Rosendahl, Knut Einar
Year of Publication: 
2012
Series/Report no.: 
Oldenburg Discussion Papers in Economics V-345-12
Abstract: 
In the absence of effective world-wide cooperation to curb global warming, import tariffs on embodied carbon have been proposed as a potential supplement to unilateral emissions pricing. We consider alternative designs for such tariffs, and analyze their effects on global welfare within a multi-region, multi-sector computable general equilibrium (CGE) model of global trade and energy. Our analysis suggests that the most cost-efficient policy could be region-specific tariffs on all products, based on direct plus electricity emissions. In the end, however, the potential cost savings through carbon tariffs must be weighed against the administrative costs as well as legal issues and political considerations.
Subjects: 
carbon leakage
embodied carbon
border tariffs
JEL: 
Q43
Q54
H2
D61
Document Type: 
Working Paper

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