The carbon border adjustment mechanism is inefficient in addressing carbon leakage and results in unfair welfare losses

نویسندگان

چکیده

The European Commission has proposed a Carbon Border Adjustment Mechanism (CBAM) to reduce carbon leakage and create level playing field for its domestic products imported goods. Nevertheless, the effectiveness of proposal remains unclear, especially when it triggers threats retaliation from trading partners Union (EU). We apply Computable General Equilibrium (CGE) model - Global Trade Analysis Project (GTAP) assess economic environmental impacts different CBAM schemes. Here we show that address risks is rather limited, raises concerns over global welfare costs, GDP losses, violation equality principles. leads multiplied which would mostly be borne by poor countries. Our results question reduction effect unilateral trade policy suggest climate change mitigation still needs performed within framework international cooperation.

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ژورنال

عنوان ژورنال: Fundamental research

سال: 2023

ISSN: ['2096-9457', '2667-3258']

DOI: https://doi.org/10.1016/j.fmre.2023.02.026