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.

Over the past decade, biofuels production in the EU and US has boomed – much of this due to government mandates and subsidies. The US has now surpassed Brazil as the world’s leading
producer of ethanol. The economic and environmental impact of these biofuel programs has become an important question of public policy. Due to the complex intersectoral linkages