Impacts of the EU carbon border adjustment mechanism
By: Flórez Mendoza, Javier.
Contributor(s): Reiter, Oliver | Stehrer, Robert
.
Material type: 
BookSeries: wiiw Policy Notes and Reports: 86Publisher: Wien : Wiener Institut für Internationale Wirtschaftsvergleiche (wiiw), 2024Description: 17 S., 5 Figures, 30cm.Subject(s): New Quantitative Trade Model | Carbon Border Adjustment Mechanism (CBAM) | trade policy welfare | CO2 emissionsCountries covered: non specificwiiw Research Areas: International Trade, Competitiveness and FDIClassification: F11 | F13 | F14 | F18 | Q56 Online resources: Click here to access online Summary: We summarise the results of our study employing a quantitative trade model to assess the implications of the EU carbon border adjustment mechanism (CBAM) on trade flows, welfare, real wages and CO2 emissions. Specifically, the general equilibrium effects of the introduction of a tariff on carbon-intensive products on European Union (EU) and European Free Trade Association (EFTA) members and non-members are assessed. For the EU, we find an increase in the terms of trade and consequently small positive welfare effects, whereas there are tiny negative effects on real wages. Non-EU countries face a decline in the terms of trade and a small welfare loss as well as marginally declining real wages. Global CO2 emissions are marginally reduced, although they minimally increase in the EU due to specialisation effects.
| Cover image | Item type | Current library | Home library | Collection | Shelving location | Call number | Materials specified | Vol info | URL | Copy number | Status | Notes | Date due | Barcode | Item holds | Item hold queue priority | Course reserves | |
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| Paper | WIIW Library | 86 (Browse shelf(Opens below)) | Available | 1000010007075 |
We summarise the results of our study employing a quantitative trade model to assess the implications of the EU carbon border adjustment mechanism (CBAM) on trade flows, welfare, real wages and CO2 emissions. Specifically, the general equilibrium effects of the introduction of a tariff on carbon-intensive products on European Union (EU) and European Free Trade Association (EFTA) members and non-members are assessed. For the EU, we find an increase in the terms of trade and consequently small positive welfare effects, whereas there are tiny negative effects on real wages. Non-EU countries face a decline in the terms of trade and a small welfare loss as well as marginally declining real wages. Global CO2 emissions are marginally reduced, although they minimally increase in the EU due to specialisation effects.
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