2013
DOI: 10.1787/5k3xn25b386c-en
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Border Carbon Adjustment and International Trade

Abstract: The OECD Trade and Environment Working Paper series is designed to make available to a wide readership selected studies by OECD staff or by outside consultants. The views expressed are those of the authors and do not necessarily reflect the official views of the OECD or of the governments of its member countries or those of the European Union. This document and any map included herein are without prejudice to the status of or sovereignty over any territory, to the delimitation of international frontiers and bo… Show more

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Cited by 12 publications
(5 citation statements)
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“…While the fact that carbon pricing levels are too low in almost every jurisdiction is the single most important hinderance to their effectiveness meeting the Paris targets (Carbon Pricing Leadership Coalition, 2017 [29]) 6 , carbon pricing will also have challenges encouraging material efficiency due to market distortions caused by the sequential nature of decision-making along supply chains, imperfect competition and government intervention to reduce the risk of carbon leakage (Skelton and Allwood, 2017[30]). Compensation mechanisms that reduce the risk of carbon leakage (e.g.…”
Section: Materials Efficiencymentioning
confidence: 99%
“…While the fact that carbon pricing levels are too low in almost every jurisdiction is the single most important hinderance to their effectiveness meeting the Paris targets (Carbon Pricing Leadership Coalition, 2017 [29]) 6 , carbon pricing will also have challenges encouraging material efficiency due to market distortions caused by the sequential nature of decision-making along supply chains, imperfect competition and government intervention to reduce the risk of carbon leakage (Skelton and Allwood, 2017[30]). Compensation mechanisms that reduce the risk of carbon leakage (e.g.…”
Section: Materials Efficiencymentioning
confidence: 99%
“…A first best solution is that of international cooperation on common goals, the Paris Agreement and associated efforts to encourage GHG mitigation actions in different countries may contribute to lessen that concern. A range of other approaches has been studied, including measures that may in some case have negative trade implication (Condon and Ignaciuk, 2013).…”
Section: Possible Carbon Leakagementioning
confidence: 99%
“…Keohane et al, 2015;Weischer and Morgan, 2013), which can either take the form of border tax adjustments or the requirement for importers to surrender allowances at the border if a club-wide emissions trading system is in place. The possible use of BCAs raises a wide range of trade-related issues, and it is unclear whether they would be permissible under WTO law (Condon and Ignaciuk, 2013;Cosbey, 2008;Dröge, 2009;Houser et al, 2008;Cosbey et al, 2012;Holzer, 2014). 8 Nordhaus (2015Nordhaus ( : 1349 shows awareness of the WTO implications, and suggests that it requires "climate amendments" to trade law.…”
Section: Potential Trade Implications Of Climate Clubsmentioning
confidence: 99%