Potential of border tax adjustments to deter free riding in international climate agreements
The objective of this study is to conduct assessment of the hypothesis that trade sanctions in the form of border tax adjustments (BTAs) used by the United States against China, constitute a viable enforcement mechanism to sustain compliance with a range of emissions taxes in the context of agreemen...
| Main Authors: | , , |
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| Format: | Article |
| Language: | English |
| Published: |
IOP Publishing
2015-01-01
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| Series: | Environmental Research Letters |
| Subjects: | |
| Online Access: | https://doi.org/10.1088/1748-9326/10/2/024009 |
| _version_ | 1827871497728819200 |
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| author | Zeynep Burcu Irfanoglu Juan P Sesmero Alla Golub |
| author_facet | Zeynep Burcu Irfanoglu Juan P Sesmero Alla Golub |
| author_sort | Zeynep Burcu Irfanoglu |
| collection | DOAJ |
| description | The objective of this study is to conduct assessment of the hypothesis that trade sanctions in the form of border tax adjustments (BTAs) used by the United States against China, constitute a viable enforcement mechanism to sustain compliance with a range of emissions taxes in the context of agreements to curb global emissions of greenhouse gases (GHGs). The performance of BTAs is then compared with those of punitive tariffs on the basis of the range of emission taxes that can be successfully enforced by their implementation. Results show that BTAs are a viable enforcement mechanism for international GHG mitigation agreements. However the maximum level of carbon tax that can be enforced varies dramatically with (1) the marginal damage of pollution perceived by Chinese authorities, and (2) the legal limitations that GATT rules may impose on BTAs. Finally, while BTAs seem a promising enforcement mechanism in the context of climate agreements, punitive tariffs seem to be capable of supporting a much stricter environmental target. |
| first_indexed | 2024-03-12T16:10:56Z |
| format | Article |
| id | doaj.art-df094608b7c6485e913b935b0d8f8ca6 |
| institution | Directory Open Access Journal |
| issn | 1748-9326 |
| language | English |
| last_indexed | 2024-03-12T16:10:56Z |
| publishDate | 2015-01-01 |
| publisher | IOP Publishing |
| record_format | Article |
| series | Environmental Research Letters |
| spelling | doaj.art-df094608b7c6485e913b935b0d8f8ca62023-08-09T14:09:24ZengIOP PublishingEnvironmental Research Letters1748-93262015-01-0110202400910.1088/1748-9326/10/2/024009Potential of border tax adjustments to deter free riding in international climate agreementsZeynep Burcu Irfanoglu0Juan P Sesmero1Alla Golub2Center for Global Trade Analysis, Department of Agricultural Economics, Purdue University , 403 W. State St., West Lafayette, IN 47907, USADepartment of Agricultural Economics, Purdue University , 403 W. State St., West Lafayette, IN 47907, USACenter for Global Trade Analysis, Department of Agricultural Economics, Purdue University , 403 W. State St., West Lafayette, IN 47907, USAThe objective of this study is to conduct assessment of the hypothesis that trade sanctions in the form of border tax adjustments (BTAs) used by the United States against China, constitute a viable enforcement mechanism to sustain compliance with a range of emissions taxes in the context of agreements to curb global emissions of greenhouse gases (GHGs). The performance of BTAs is then compared with those of punitive tariffs on the basis of the range of emission taxes that can be successfully enforced by their implementation. Results show that BTAs are a viable enforcement mechanism for international GHG mitigation agreements. However the maximum level of carbon tax that can be enforced varies dramatically with (1) the marginal damage of pollution perceived by Chinese authorities, and (2) the legal limitations that GATT rules may impose on BTAs. Finally, while BTAs seem a promising enforcement mechanism in the context of climate agreements, punitive tariffs seem to be capable of supporting a much stricter environmental target.https://doi.org/10.1088/1748-9326/10/2/024009border tax adjustmentsub-game perfect Nash equilibriumclimate policycomputable general equilibriumpunitive tariffs |
| spellingShingle | Zeynep Burcu Irfanoglu Juan P Sesmero Alla Golub Potential of border tax adjustments to deter free riding in international climate agreements Environmental Research Letters border tax adjustment sub-game perfect Nash equilibrium climate policy computable general equilibrium punitive tariffs |
| title | Potential of border tax adjustments to deter free riding in international climate agreements |
| title_full | Potential of border tax adjustments to deter free riding in international climate agreements |
| title_fullStr | Potential of border tax adjustments to deter free riding in international climate agreements |
| title_full_unstemmed | Potential of border tax adjustments to deter free riding in international climate agreements |
| title_short | Potential of border tax adjustments to deter free riding in international climate agreements |
| title_sort | potential of border tax adjustments to deter free riding in international climate agreements |
| topic | border tax adjustment sub-game perfect Nash equilibrium climate policy computable general equilibrium punitive tariffs |
| url | https://doi.org/10.1088/1748-9326/10/2/024009 |
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