Border Tax Adjustment: A feasible way to support stringent emission trading

Ismer R, Neuhoff K (2007)

Publication Type: Journal article

Publication year: 2007

Journal

European Journal of Law and Economics Springer Verlag (Germany)

Publisher: Springer Verlag (Germany)

City/Town: European Journal of Law and Economics 24 (2007): 137-164

Book Volume: 24

Pages Range: 137-164

Journal Issue: 2

DOI: 10.1007/s10657-007-9032-8

Abstract

CO2 emission allowances help to internalise effects of fossil fuel consumption on global climate and sea levels. However, consumption, production and investment decisions do not reach the optimal allocation when the scheme is only implemented in some countries. Production with inefficient facilities in non-participating countries may even increase. Border tax adjustment (BTA) for costs incurred from procuring CO2 emission allowances reduces the leakage. We show that BTA can be both feasible and compatible with World Trade Organization (WTO) constraints. Practicable implementability requires a focus on CO2 emissions from certain processed materials and a separate treatment of electric energy input. © 2007 Springer Science+Business Media, LLC.

Authors with CRIS profile

Roland Ismer Lehrstuhl für Steuerrecht und Öffentliches Recht

Involved external institutions

Technische Universität Berlin DE Germany (DE)

How to cite

APA:

Ismer, R., & Neuhoff, K. (2007). Border Tax Adjustment: A feasible way to support stringent emission trading. European Journal of Law and Economics, 24(2), 137-164. https://dx.doi.org/10.1007/s10657-007-9032-8

MLA:

Ismer, Roland, and Karsten Neuhoff. "Border Tax Adjustment: A feasible way to support stringent emission trading." European Journal of Law and Economics 24.2 (2007): 137-164.

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