Climate Change and Trade: Taxing carbon at the border?

GROS Daniel , EGENHOFER Christian , FUJIWARA Noriko

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Product details

  • Categories: Environnement
  • Publisher: CEPS
  • Collection: CEPS Paperbacks
  • ISBN: 9789290798675
  • Publication Date: 27/05/2010
  • Binding: Paperback
  • Number of pages: 120
  • Language: English

Summary

This study analyses the economic and political consequences of introducing a tax on the carbon content of imported goods at EU borders and whether such a tax would be compatible with WTO rules. The major findings are: 1. A CO2 border tax or import tariff would increase global welfare. 2. Such a carbon import tariff can be made to be compatible with WTO rules. 3. There are no insurmountable practical obstacles to introducing such a tariff. 4. The equity concerns of the UNFCCC could be taken into account by rebating the proceeds of the tariff to those countries manifestly unable to shoulder the burden themselves.