October 2, 2008

Border tax adjustment and the EU-ETS, a quantitative assessment

Grensmaatregelen voor energie-intensieve sectoren: middel lijkt erger dan de kwaal

Press release
Dit zijn de belangrijkste conclusies uit het vandaag verschenen rapport Border tax adjustments and the EU-ETS, een gezamenlijk onderzoek van het Centraal Planbureau (CPB) en het Planbureau voor de Leefomgeving (PBL).

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Paul Veenendaal
Dick Morks

However, when use is made of the opportunities of the Clean Development Mechanism these impacts are very modest. Border tax adjustments (BTAs) to ‘level the playing field’ between domestic and foreign producers may be considered to address the concerns about both competitiveness and carbon leakage. It is far from clear whether these measures are WTO-proof. Simulations show that both an import levy and an export refund restore competitiveness to a certain extent. BTAs may lower the costs for energy-intensive sectors, but induce higher costs for other sectors. This paper uses a general equilibrium model to quantify and assess the implications of a number of policy scenarios.


Paul Veenendaal
Ton Manders