Implementing Carbon Tariffs : A Fool’s Errand?
Some governments are considering taxes on imports based on carbon content from countries that have not introduced climate change policies. Such carbon border taxes appeal to domestic industries facing higher charges for their own carbon emissions....
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| Format: | Policy Research Working Paper |
| Language: | English |
| Published: |
2012
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| Online Access: | http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20100719141341 http://hdl.handle.net/10986/3843 |
| Summary: | Some governments are considering taxes
on imports based on carbon content from countries that have
not introduced climate change policies. Such carbon border
taxes appeal to domestic industries facing higher charges
for their own carbon emissions. This research demonstrates
that there are enormous practical difficulties surrounding
such plans. Various policies are evaluated according to
World Trade Organization compliance, administrative
plausibility, help in meeting environmental goals, and
ability to deal with domestic pressures. The steel industry
is used as a case study in this analysis. All considered
policies arguably fail to meet at least one of these
constraints, bringing into question the plausibility that a
carbon border tax can be practical policy. |
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