Carbon Border Adjustment Mechanism, Carbon Pricing, and Within-Sector Shifts: A Partial Equilibrium Approach to Vietnam's Steel Sector

Chu, Long; Nam Do, Thang; Le, Thi Ha Lien; Ho, Quoc Anh; Dang, Khoi

doi:10.2139/ssrn.4678592

2023

DOI: 10.2139/ssrn.4678592

|View full text |Cite

Preprint

Carbon Border Adjustment Mechanism, Carbon Pricing, and Within-Sector Shifts: A Partial Equilibrium Approach to Vietnam's Steel Sector

Long Chu,

Thang Nam Do,

Thi Ha Lien Le

et al.

Help me understand this report

Search citation statements

Order By: Relevance

Paper Sections

Select...

Citation Types

Supporting

Mentioning

Contrasting

Year Published

2024

Publication Types

Select...

Article1

Relationship

Self Cite0

Independent1

Authors

Journals

Cited by 1 publication

References 28 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

The economic impacts of the European Union’s Carbon Border Adjustment Mechanism on developing countries: the case of Vietnam

Chu,

Do,

Nguyen

et al. 2024

FREP

View full text Add to dashboard Cite

PurposeThis paper aims to assess the economic impacts of the European Union’s Carbon Border Adjustment Mechanism (CBAM) on Vietnam.Design/methodology/approachWe constructed a general equilibrium model to assess the economic impacts of the CBAM on the macroeconomic indicators of Vietnam. We also constructed a generic partial equilibrium model to provide a zoomed-in view of the impact on each group of CBAM-targeted commodities, which is not possible in the general equilibrium model. Both the general equilibrium and the partial equilibrium models were calibrated with publicly available data and a high number of value sets of hyperparameters to estimate the variations of the estimated impacts.FindingsThe results suggest that the current form of the EU’s CBAM is unlikely to produce substantial effects on the overall economy of Vietnam, mainly because the commodities affected by it represent a small portion of Vietnam’s exports. However, at the sectoral level, the CBAM can reduce production outputs and export values of steel, aluminium, and cement.Social implicationsThe CBAM by itself may not lead to significant decreases in greenhouse gas emissions, but it could provide a rationale for implementing carbon pricing strategies, which might result in more significant economic effects and help in reducing greenhouse gas emissions. This highlights the necessity of supplementary policies to tackle global climate change.Originality/valueWe constructed economic models to evaluate the impacts of the European Union’s Carbon Border Adjustment Mechanism on Vietnam, both at the macroeconomic level and zooming in on directly impacted groups of commodities.

show abstract

The economic impacts of the European Union’s Carbon Border Adjustment Mechanism on developing countries: the case of Vietnam

Chu,

Do,

Nguyen

et al. 2024

FREP

View full text Add to dashboard Cite

show abstract

scite is a Brooklyn-based organization that helps researchers better discover and understand research articles through Smart Citations–citations that display the context of the citation and describe whether the article provides supporting or contrasting evidence. scite is used by students and researchers from around the world and is funded in part by the National Science Foundation and the National Institute on Drug Abuse of the National Institutes of Health.

Contact Info

customersupport@researchsolutions.com

10624 S. Eastern Ave., Ste. A-614

Henderson, NV 89052, USA

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

Blog Terms and Conditions API Terms Privacy Policy Contact Cookie Preferences Do Not Sell or Share My Personal Information

Made with 💙 for researchers

Part of the Research Solutions Family.

Carbon Border Adjustment Mechanism, Carbon Pricing, and Within-Sector Shifts: A Partial Equilibrium Approach to Vietnam's Steel Sector

Cited by 1 publication

References 28 publications

The economic impacts of the European Union’s Carbon Border Adjustment Mechanism on developing countries: the case of Vietnam

The economic impacts of the European Union’s Carbon Border Adjustment Mechanism on developing countries: the case of Vietnam

Contact Info

Product

Resources

About