How Large are the Impacts of Carbon Motivated Border Tax Adjustments

by Yan Dong and John Whalley

- This paper discusses the size of impact of carbon motivated border tax adjustments on world trade. We report numerical simulation results which suggest that impacts on welfare, trade, and emissions will likely be small. This is because proposed measures use carbon emissions in the importing country in producing goods similar to imports rather than carbon content in calculating the size of barriers.

Dong, Y. and J. Whalley (2009). "How Large are the Impacts of Carbon Motivated Border Tax Adjustments." NBER Working Paper No. 15613, Dec 2009.