Publication:
Leveling or Mining the Playing Field? Implementation Problems of Carbon-Motivated Border Adjustment Taxes

dc.contributor.authorJensen, Michael Friis
dc.date.accessioned2012-08-13T14:08:45Z
dc.date.available2012-08-13T14:08:45Z
dc.date.issued2009-12
dc.description.abstractClimate change policies and trade policy are on a collision course. Border tax adjustments are at the center of the debate and are being considered in many Organization for Economic Co-operation and Development (OECD) countries, notably the United States and the European Union (EU). They will tax carbon emissions at the border with the aim of leveling the playing field between countries with different carbon emission limits. Border tax adjustments may be justified theoretically, but the challenges of implementation and its associated costs and incentives are a key determinant of the outcome. Implementation depends on complex administrative arrangements and controversial calculations of the embedded carbon in imported goods. Border tax adjustment schemes might mine rather than level the playing field. Implementation problems invite vested interests to influence the policy process and divert border adjustment taxes towards protectionist uses. Decision makers and academics alike have produced little evidence on implementation problems but appear to discuss the very complex border tax adjustment scheme with the implicit assumption that implementation problems can be solved if the need arises. The implementation problems are linked to the difficulties of calculating embedded carbon. This paper discusses a key question: how accurately can we measure embedded carbon and what will the inherent uncertainty do to trade policy when it triggers political economy forces?en
dc.identifierhttp://documents.worldbank.org/curated/en/2009/12/11684133/leveling-or-mining-playing-field-implementation-problems-carbon-motivated-border-adjustment-taxes
dc.identifier.doi10.1596/11101
dc.identifier.urihttps://hdl.handle.net/10986/11101
dc.languageEnglish
dc.publisherWorld Bank, Washington, DC
dc.relation.ispartofseriesPREM Notes; No
dc.rightsCC BY 3.0 IGO
dc.rights.holderWorld Bank
dc.rights.urihttp://creativecommons.org/licenses/by/3.0/igo/
dc.subjectALUMINUM
dc.subjectCALCULATION
dc.subjectCARBON
dc.subjectCARBON CONTENT
dc.subjectCARBON DIOXIDE
dc.subjectCARBON EMISSION
dc.subjectCARBON EMISSIONS
dc.subjectCARBON ENERGY
dc.subjectCARBON FOOTPRINT
dc.subjectCARBON LEAKAGE
dc.subjectCHEMICALS
dc.subjectCLIMATE
dc.subjectCLIMATE CHANGE
dc.subjectCLIMATE CHANGE LEGISLATION
dc.subjectCLIMATE CHANGE MITIGATION
dc.subjectCLIMATE CHANGE MITIGATION PERSPECTIVE
dc.subjectCLIMATE CHANGE NEGOTIATIONS
dc.subjectCLIMATE POLICY
dc.subjectCOPPER
dc.subjectELECTRICITY
dc.subjectEMISSION
dc.subjectEMISSION LIMITS
dc.subjectEMISSIONS
dc.subjectENERGY SOURCES
dc.subjectFEASIBILITY
dc.subjectFUEL
dc.subjectFUELS
dc.subjectGLOBAL EMISSIONS
dc.subjectGRAPHITE
dc.subjectGREENHOUSE
dc.subjectHEAVY INDUSTRY
dc.subjectIRON
dc.subjectLOW-CARBON
dc.subjectMANGANESE
dc.subjectNICKEL
dc.subjectNUCLEAR POWER
dc.subjectPOLICY ADVICE
dc.subjectPOLICY MAKERS
dc.subjectPOTASSIUM
dc.subjectRAW MATERIALS
dc.subjectREFINERIES
dc.subjectSILICON
dc.subjectWIND
dc.subjectZINC
dc.titleLeveling or Mining the Playing Field? Implementation Problems of Carbon-Motivated Border Adjustment Taxesen
dspace.entity.typePublication
okr.crosscuttingsolutionareaClimate Change
okr.date.doiregistration2025-04-29T09:20:47.369109Z
okr.doctypePublications & Research::Brief
okr.doctypePublications & Research
okr.docurlhttp://documents.worldbank.org/curated/en/2009/12/11684133/leveling-or-mining-playing-field-implementation-problems-carbon-motivated-border-adjustment-taxes
okr.globalpracticeMacroeconomics and Fiscal Management
okr.globalpracticeEnvironment and Natural Resources
okr.globalpracticeEnergy and Extractives
okr.globalpracticeEnergy and Extractives
okr.guid143011468147841183
okr.identifier.externaldocumentum000334955_20100122041033
okr.identifier.internaldocumentum11684133
okr.identifier.report52821
okr.language.supporteden
okr.pdfurlhttp://www-wds.worldbank.org/external/default/WDSContentServer/WDSP/IB/2010/01/22/000334955_20100122041033/Rendered/PDF/528210BRI0prem10Box345583B01PUBLIC1.pdfen
okr.topicEnvironment::Climate Change Mitigation and Green House Gases
okr.topicMacroeconomics and Economic Growth::Climate Change Economics
okr.topicEnergy::Energy and Environment
okr.topicEnvironment::Carbon Policy and Trading
okr.topicEnvironment::Environment and Energy Efficiency
okr.unitAFT: PREM Front Office (AFTPM)
okr.volume1 of 1
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