Border carbon adjustment and trade retaliation: What would be the cost for the European Union?

Fouré, Jean; Guimbard, Houssein; Monjon, Stéphanie

doi:10.1016/j.eneco.2015.11.021

Cited by 52 publications

(25 citation statements)

References 21 publications

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“…Raw materials are commonly produced in countries with low environmental standards and only minor regulations with regard to the impact of mining on the local community and human health (Edwards et al, 2014; Schrecker, Birn, & Aguilera, 2018; Whitmore, 2006). Border adjustment measures could help increase price competitiveness of domestic raw material production but harbor potential for trade conflicts (Fouré, Guimbard, & Monjon, 2016; Mehling, van Asselt, Das, Droege, & Verkuijl, 2019) and could endanger competitiveness of German companies with their global rivals.…”

Section: Results: the Revised German Raw Materials Strategymentioning

confidence: 99%

The Revised German Raw Materials Strategy in the Light of Global Political and Market Developments

Schmid

2021

Review of Policy Research

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Raw material markets have proven to be challenging in recent years. The so-called critical raw materials (CRMs), which are required for green technology, have particularly high environmental and supply risks. The revised German raw materials strategy attempts to address challenges of production and supply of CRMs and other mineral-based raw materials. This contribution analyzes the motivation, measures, goals, and challenges of the German raw materials strategy in the light of global economic and political developments, applying the qualitative method GABEK®. Results show that the revised strategy is more ambitious and reaches farther than the initial strategy of 2010. Challenges that remain include the lack of willingness of the German industry to engage in mine production and the more pro-active political approaches demonstrated elsewhere. As all major economic powerhouses outside of Europe pursue a hands-on approach, it remains questionable if the revised German raw materials strategy will fundamentally be able to sustainably secure raw material supply for the German industry.

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Section: Results: the Revised German Raw Materials Strategymentioning

confidence: 99%

The Revised German Raw Materials Strategy in the Light of Global Political and Market Developments

Schmid

2021

Review of Policy Research

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“…In particular, a rich group of quantitative analyses have been conducted to capture how the ETS market impacts and is impacted by different goods markets, especially for energy commodities (electricity [64,148], coal [149,150], solar electricity [151], wind electricity [151], etc.) and emissions-intensive commodities [152]. For each market, the key factors were introduced into quantitative models for analyses, including commodity prices [153,154], stock index [151], returns [51], volatility [39], sales [154], transaction volume [155], exports and imports [152], employment [156], generation [151], demand [157], etc.…”

Section: Research Hotspotsmentioning

confidence: 99%

Quantitative models in emission trading system research: A literature review

Tang

Wang

et al. 2020

Renewable and Sustainable Energy Reviews

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Diverse quantitative models have been applied to analyse emission trading system, as the top effective climate change policy. This paper is the first attempt to present a comprehensive literature review on full-scale types of quantitative models in emission trading system research. The models dominating emission trading system-related literature could be categorized as optimization models, simulation models, assessment models, statistical models, artificial intelligences and ensemble models. Using different quantification and solution tools, these models complemented and enriched each other in serving the various agents involved in emission trading system and facilitating their respective emission trading system related works: the government to design emission trading system policies, enterprises to participate in emission trading system and goods markets, third parties to regulate emission trading system and emission trading system markets involving different agents. For each agent, a systematic analysis is provided on research hotspots (the challenges to address), quantitative models (to describe the problems and find the results), main findings (the policy implications from the models) and future research (potential improvements on existing models). Some interesting conclusions are obtained. (1) Generally, China was the largest contributor to emission trading system research using quantitative models (representing 35.71% of the total articles). (2) The research hotspots were decision making by enterprises under an emission trading system (20.92%), spillovers amongst emission trading system and other markets (17.54%) and allowance allocation by the government (12.52%). (3) Popular quantitative models included various optimization models (32.00%) and simulation models (29.64%). Highlights：• A variety of quantitative models have been applied to ETS research.• A comprehensive review on full-scale types of models in ETS research is presented.• Optimization, simulation, assessment, statistical, AI & ensemble models were built.• Models helpfully served the government, enterprises, third parties & market in ETS.• For each agent, hotspots, models, main findings and future research are analysed.

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“…Faced with import carbon taxes, the EU's trading partners might revert to unilateral retaliation rather than awaiting the results of the WTO arbitration court ruling. The export losses would mainly affect China, the US, India and Russia, and could range from $400 million to $1.4 billion in the first year of implementation of the measure (Fouré et al 2016). This may lead these countries to punish the EU by putting prohibitive duties in place.…”

Section: Be Ready For the Responsementioning

confidence: 99%

“…This may lead these countries to punish the EU by putting prohibitive duties in place. Fouré et al (2016), however, also note, based on previous cases, that trade partners would most probably target European agriculture first, as the EU is the world's biggest food exporter. Whatever the targeted sector, the retaliation is likely to be very strong.…”

Section: Be Ready For the Responsementioning

confidence: 99%

Saving face and facing climate change: Are border adjustments a viable option to stop carbon leakage?

Palacková¹

2019

European View

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This article argues that imposing a carbon tariff on imports from the EU’s trading partners could deliver tangible climate results but would also provoke strong trade repercussions. Ideally, the implementation of the Paris Agreement remains the best solution for the planet. But ambitious domestic climate policy in the absence of an international commitment to reduce carbon emissions puts the EU at a competitive disadvantage. While continuing its leadership on climate action, the EU has addressed the threat of displacing its production and its emissions elsewhere by subsidising European industry with carbon credits, an approach which has had unconvincing results. Carbon border adjustments could be a controversial but better option.

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Border carbon adjustment and trade retaliation: What would be the cost for the European Union?

Cited by 52 publications

References 21 publications

The Revised German Raw Materials Strategy in the Light of Global Political and Market Developments

The Revised German Raw Materials Strategy in the Light of Global Political and Market Developments

Quantitative models in emission trading system research: A literature review

Saving face and facing climate change: Are border adjustments a viable option to stop carbon leakage?

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