Global Welfare Implications of Carbon Border Taxes

By Daniel Gros. Social Science Research Network, 2009

123 citations recorded by the source corpus.

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.

Subfields: Economics and Econometrics, Renewable Energy, Sustainability and the Environment

View Paper: https://www.semanticscholar.org/paper/ff7f33aadb0fe97c735ce31164a0b00741c36bd6

Citations in the corpus

• Oil Exports and the Iranian Economy (2013, unknown): “Value added of oil group, Gross Domestic Product at Basic Prices, and Non-Oil Gross Domestic Product at Basic Prices are available annually from 1959 and quarterly from 1988Q2. 13For further information see U.S. Census Bureau (2007): X-12-ARIMA Reference Manual at http://www.”