This recent study analyses the economic and political consequences of introducing a tax on the carbon content of imported goods at EU borders and whether such a tax would be compatible with WTO rules.
This study analyses the economic and political consequences of introducing a tax on the carbon content of imported goods at EU borders and whether such a tax would be compatible with WTO rules. The major findings are: A CO2 border tax or import tariff would increase global welfare; Such a carbon import tariff can be made to be compatible with WTO rules; There are no insurmountable practical obstacles to introducing such a tariff;
and The equity concerns of the UNFCCC could be taken into account by rebating the proceeds of the tariff to those countries manifestly unable to shoulder the burden themselves.
Links:
[1] http://admin.indiaenvironmentportal.org.in/reports-documents/climate-change-and-trade-taxing-carbon-border
[2] http://admin.indiaenvironmentportal.org.in/category/author/christian-egenhofer
[3] http://admin.indiaenvironmentportal.org.in/category/author/daniel-gros
[4] http://admin.indiaenvironmentportal.org.in/category/publisher/centre-european-policy-studies-ceps
[5] http://admin.indiaenvironmentportal.org.in/category/thesaurus/unfccc
[6] http://admin.indiaenvironmentportal.org.in/category/thesaurus/carbon-dioxide
[7] http://admin.indiaenvironmentportal.org.in/category/thesaurus/carbon-tax
[8] http://admin.indiaenvironmentportal.org.in/category/thesaurus/climate-change
[9] http://admin.indiaenvironmentportal.org.in/category/thesaurus/trade
[10] http://admin.indiaenvironmentportal.org.in/category/thesaurus/wto
[11] http://admin.indiaenvironmentportal.org.in/category/thesaurus/kyoto-protocol
[12] http://admin.indiaenvironmentportal.org.in/category/thesaurus/eu-ets
[13] http://admin.indiaenvironmentportal.org.in/category/thesaurus/energy
[14] http://admin.indiaenvironmentportal.org.in/category/thesaurus/fossil-fuels
[15] http://admin.indiaenvironmentportal.org.in/category/thesaurus/india
[16] http://admin.indiaenvironmentportal.org.in/category/place-publication/brussels
[17] http://admin.indiaenvironmentportal.org.in/category/thesaurus/european-union-eu
[18] http://admin.indiaenvironmentportal.org.in/category/thesaurus/carbon-market
[19] http://admin.indiaenvironmentportal.org.in/category/thesaurus/cap-and-trade