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Rapport (Rapport De Recherche) Année : 2020

Possible carbon adjustment policies: An overview

Résumé

The new European Commission has announced policies to reduce greenhouse gas emissions drastically. Reaching an ambitious target for a global good – the climate – would require a common price for carbon worldwide. This however clashes with the free-riding problem. Furthermore, unilateral policies are not efficient since they lead to carbon leakages and distort competitiveness. To tackle these issues, the European Union can rely on different policies. Firstly, a carbon pricing of imports can combined with an export rebate to constitute a ‘complete CBA’ (Carbon Border Adjustment) solution. Alternatively, a simple tariff at the border can compensate for differences in carbon prices between domestic and imported products. A consumption-based carbon taxation can al so be contemplated. Last, a uniform tariff on imports from countries not imposing (equivalent) carbon policies may help solving the free-riding problem.
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Dates et versions

hal-02880332 , version 1 (24-06-2020)

Identifiants

Citer

Cecilia Bellora, Lionel Fontagné. Possible carbon adjustment policies: An overview. [Research Report] PE 603.500 - April 2020, European Parliament Directorate-General For External Policies. 2020, https://www.europarl.europa.eu/RegData/etudes/BRIE/2020/603500/EXPO_BRI(2020)603500_EN.pdf. ⟨hal-02880332⟩
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