Mattoo, AadityaSubramanian, Arvindvan der Mensbrugghe, DominiqueHe, Jianwu2012-03-192012-03-192009-11-01https://hdl.handle.net/10986/4319There is growing clamor in industrial countries for additional border taxes on imports from countries with lower carbon prices. The authors confirm the findings of other research that unilateral emissions cuts by industrial countries will have minimal carbon leakage effects. However, output and exports of energy-intensive manufactures are projected to decline potentially creating pressure for trade action. A key factor affecting the impact of any border taxes is whether they are based on the carbon content of imports or the carbon content in domestic production. Their quantitative estimates suggest that the former action when applied to all merchandise imports would address competitiveness and environmental concerns in high income countries but with serious consequences for trading partners. For example, China s manufacturing exports would decline by one-fifth and those of all low and middle income countries by 8 per cent; the corresponding declines in real income would be 3.7 per cent and 2.4 per cent. Border tax adjustment based on the carbon content in domestic production, especially if applied to both imports and exports, would broadly address the competitiveness concerns of producers in high income countries and less seriously damage developing country trade.CC BY 3.0 IGOAGGREGATE DEMANDAGGREGATE EMISSIONSALLOCATIONALLOWANCEALLOWANCE PROVISIONALUMINUMATMOSPHEREATMOSPHERIC CONCENTRATIONATMOSPHERIC CONCENTRATIONSBASELINE EMISSIONSBASESBILATERAL TRADECARCARBONCARBON ABATEMENTCARBON CAPTURECARBON CONTENTCARBON CONTENT OF ENERGYCARBON DIOXIDECARBON EMISSIONCARBON EMISSIONSCARBON FERTILIZATIONCARBON INTENSITYCARBON LEAKAGECARBON OFFSETSCARBON PRICECARBON PRICESCARBON TAXCARBON TAXESCARSCEMENT INDUSTRYCH4CLEAN ENERGYCLIMATECLIMATE CHANGECLIMATE POLICIESCLIMATE POLICYCO2COALCOAL SUPPLYCOMBUSTIONCONSERVATIONCONSUMER DEMANDCOST OF PRODUCTIONCRUDE OILCULTIVATED LANDDEMAND ELASTICITYDOMESTIC CARBONDOMESTIC EMISSIONSDOMESTIC PRODUCTIONDRIVERSECONOMIC MODELECONOMIC MODELSELASTICITIESELASTICITY OF SUBSTITUTIONELECTRICITYELECTRICITY PRODUCTIONEMISSIONEMISSION ABATEMENTEMISSION ALLOWANCESEMISSION COEFFICIENTSEMISSION LIMITSEMISSION REDUCTIONEMISSION REDUCTIONSEMISSION TAXESEMISSIONSEMISSIONS ALLOWANCESEMISSIONS CUTSEMISSIONS LEAKAGEEMISSIONS LEVELSEMISSIONS REDUCTIONEMISSIONS REDUCTIONSEMISSIONS SCENARIOSEMISSIONS TAXESEND-USER PRICEENERGY DEMANDENERGY EFFICIENCYENERGY GOODSENERGY INTENSIVEENERGY INTENSIVE MANUFACTURINGENERGY MARKETENERGY MARKETSENERGY POLICYENERGY PRICESENERGY TECHNOLOGIESENERGY-INTENSIVE GOODSENERGY-INTENSIVE MANUFACTURINGENVIRONMENTAL IMPACTENVIRONMENTAL POLICYENVIRONMENTAL STANDARDSEXCHANGE RATEEXTERNALITIESEXTREME SCENARIOF-GASESFATSFERROUS METALSFINANCIAL FLOWSFORESTRYFOSSIL FUELFOSSIL FUELSFREE ALLOWANCESFREE EMISSIONFREE TRADEFUEL SUBSIDIESFUEL SUBSTITUTIONFUEL SUPPLYGCMGENERAL EQUILIBRIUM MODELGHGGHGSGLOBAL CLIMATE CHANGEGLOBAL EMISSIONSGLOBAL ENVIRONMENTGLOBAL ENVIRONMENTAL CONCERNSGLOBAL WARMINGGREENHOUSEGREENHOUSE GASGREENHOUSE GAS MITIGATIONGREENHOUSE GASESHIGH ENERGYHYDROFLUOROCARBONSIMPORTSINCOMEINJURYINORGANIC CHEMICALSINTERNATIONAL ENERGY AGENCYINVESTMENT DECISIONSIPCCIRONJOBSLEVEL OF EMISSIONSLUMP SUMMARGINAL ABATEMENTMETHANEMETHANE EMISSIONSMOBILITYMOTOR VEHICLESN2ONATURAL GASNATURAL RESOURCESNEGATIVE IMPACTNITROUS OXIDENUCLEAR POWERO3OIL EQUIVALENTOIL PRICEOILSOUTPUT DECLINESPAPER PRODUCTSPER CAPITA INCOMESPETROCHEMICALSPLANT GROWTHPLASTICSPOLICY IMPLICATIONSPOWER GENERATIONPOWER SECTORPPPRICE CHANGESPRICE OF EMISSIONSPRICE OF OILPROBABILITY DISTRIBUTIONPUBLIC TRANSPORTATIONQUANTITATIVE ANALYSISRADIATIVE FORCINGREBATESREDUCTION IN EMISSIONSREFINED OILRENEWABLE TECHNOLOGIESREVENUE RECYCLINGSHADOW PRICESUGAR CANETAX REVENUETAX REVENUESTEMPERATURETEMPERATURE CHANGETRADE IMPACTSTRADE RESPONSESTRADING PARTNERSTRANSPORTTRANSPORT EQUIPMENTTRANSPORTATIONTRUEWASTEWELFARE CONSEQUENCESWINDWOOD PRODUCTSWORLD EMISSIONSWorld Bank10.1596/1813-9450-5123