Design of Carbon Taxes and Implementation of Border Tax Adjustments
Climate Change and Trade Taxing Carbon at the Border
The article introduces the concept of taxing carbon at the border by revealing that in the modern world, it has become a key policy for countries to combat the excessive warming of the earth. The study discusses the cost and benefit of implementing the carbon tax border measures with the use of available literature that discusses whether the issue of border tax adjustment effective or its implementation is not efficient to the global nations.[1] The article has as well focused on explaining the gains that climate change welfare gets from the introduction of the carbon tariffs.[2] The study has as well come up with several findings concerning the topic of research. The article found out that from a global welfare perspective, most of the studies concerning carbon tax and border tax adjustment has focused on two concepts of climate change, which are carbon leakage and the way many companies have lost competitiveness regarding the debates that concerns limits on emissions.[3]
Consumption- Versus Production- Based Emission Policies
The article focuses on explaining the emission regulations established by the domestic emission pricing. The research identifies that carbon tax and border tax adjustment (BTA) are the charges that are associated with the production of goods that are imported domestically, as well as goods that exported to other countries.[4] The research presented in the article is based on the previous studies, whereby the researcher review the production and consumption approaches that are set to regulate greenhouse gas emissions (GHG). The article presents correct attribution of countries where the researchers emphasize on account of individuals countries in relations to the issue of global emission. The research outlined in the article has revealed several findings relating to the subject of research.[5] First, from the study it is found out that for individual countries it is complex to capture on the production of emission products. The study also found out that there are no reasons for countries coming up with identical prices on imported emission and domestic emission.
Carbon Taxes a Review of Experience and Policy Design Consideration
In the introduction chapter, the article points out that carbon taxes programs have been in place for almost 20 years.[6] The article has identified the 1990s era as the time when carbon taxes come to existence, in which the programs existed mostly in North Europe countries such as Finland, Netherlands, Norway, Sweden, and Denmark.[7] The study affirms that carbon tax programs are important as they return tax revenues through income tax reduction and other means for customers. The study continue and say that through the integration of economic theory, the carbon tax programs enhances cost saving. The article is based on the literature from previous studies, and it has significant findings. From the article, it is found that in the 1990s, the reduction of emission through carbon taxes was high as it increased to 15% rate.[8] The article has also identified in some countries such as British Columbia; carbon tax rate was specified for future, where changes in the tax rate would rely on whether GHG emissions target are met.
Carbon Tax and Equity: The Importance of Policy Design
The article has focused on highlighting the significance of the design of carbon tax programs. For supportive illustration, the study compares three tax-recycling schemes that are modeled in an equilibrium framework.[9] The study focuses on the case France, in which it explains that carbon tax in France was a political agenda. Several models have been used in the survey, and each schem is employed to demonstrate the importance of carbon tax program to the household. The article reveals that the impacts of the carbon tax are related to the welfare of households, which makes people to devote their budget to energy consumption.[10] The article found out that the carbon tax programs are significance as the reduce income inequality.[11]
A Carbon Tax in Broader U.S. Fiscal Reform: Design and Distributional Issues
The study is based on economist perspectives, as it relates to the way economist view the concept of carbon tax programs. The article is presented in the form of a report, where the study presents an argument about the designing of a carbon tax in the United States. The article’s rationale includes reviewing the design of carbon tax program to the context of broader reforms and discussing the environment benefit that the program has to the United States. The study’s major findings are that in the U.S carbon tax program is designed to improve the American fiscal situation and to control the rate of greenhouse gas (GHG) emissions.[12]
Design of an International Trade Law Compliant Carbon Border Tax Adjustment
The research focuses on studying carbon tax program by reviewing the carbon border tax adjustment and the carbon tax bill. The article identifies two primary form of carbon BTA with the review of a domestic carbon tax.[13] The study names the carbon BTA on the imported goods as one of the major design of carbon border tax adjustment. The other form of carbon tax, as identified in the article is the rate equivalency carbon BTA, embedded in the imported products to reduce the rate GHG emission.[14] The article found that carbon leakage measure and border tax adjustment are concepts that need to be reviewed by the World Trade Organization in a consistent manner.
Implications for the Design of Border Tax Adjustments
The article refers carbon border tax adjustment (BTAs) as the concepts that are politically endorsed.[15] From the introduction, the article talks about BTAs as the component that is popularly used by the individual countries government to avoid competitive disadvantage challenges, especially when a nation implement climate change policies and programs. The article uses the United States case study, in particular, that of steel imports to determine the effectiveness of a BTA. The article selects steel as a case study because the product has the highest energy intensity, which makes it vulnerable to competitiveness concern. The study uses primary data for effectiveness and showing evidence concerning the subject of the survey.[16] The article found out that 160 Mt of carbon dioxide is exemplified of steel that is relevant in the United States.[17]
Leveling the Carbon Playing Field
The study examines the impact of United States climate policy to the Americans economy. The article reveals that many policies have been proposed as a way of responding to the climate concerns. These policies are set with the aim of identifying programs that will make sure that in the U.S the issue of carbon dioxide emissions does influence the fate of the American economy.[18] Additionally, to discuss the concept of the carbon tax in details, the study compares carbon tax and cap and trade market –based regulatory mechanism.[19] The article also discusses on the aspect of measuring carbon at the border. An important finding from the article concerns the United States economy. In this case, the article reveals that US economy will suffer from the loss economically if no actions are taken to combat the carbon dioxide emission.[20]
Consumption Based Approaches in International Climate Policy
The discussion on this article analyzes the consequences of changing to consumption-based policy from the current system of production based climate policy. The study introduces the reason why it is necessary for a country to adopt consumption-based policies. The study reviews research that has to be done by other scholars on the topic of economic, legal, and political background concerning consumption-based approaches. The methodology of the study is structured into three sections, with the aim of each chapter attempting to provide the answer to the study’s question.[21] The study findings are clear, but one of the articles’ crucial finding is that the introduction of that adhere border adjustment has led to a reduction of emissions when compared to the policies that do not have border adjustment models.[22]
Tax Policy Issues in Designing a Carbon Tax
The article introduces the concept of carbon tax as a tool that is used to discourage the GHG emissions, as one of the factors that cause climate changes.[23] The article examines the way carbon tax can be used to reduce the risk of climate change through the aspect of minimizing the cost of emissions, encouraging innovations, and bringing about revenues that can be utilized for different purposes. The article also looks at the challenges or problems that carbon tax can bring to a country. The challenges brought by the carbon tax concept are discussed through the review of the concepts such as setting the tax, collecting the tax, and the way the collected revenue is used.[24] From the study, significant findings are identified. As such, the study found out that designing, administering carbon tax programs is not easy, and for the carbon tax programs effectiveness, the policy makers need to use practical negotiations so that they can come up with programs that are addressing the climate change issues.
Bibliography
Astoria, Ross. “Design of an International Trade Law Compliant Carbon Border Tax Adjustment.” The Arizona Journal of Environmental Law & Policy Vol.6, no. 491 (2015): 491-534
Combet, Emmanuel, Frédéric Ghersi, Jean Charles Hourcade, and Daniel Théry. “Carbon Tax and Equity: The Importance of Policy Design.” Critical Issues in Environmental Taxation (2010): pp-1-29
Gros, Daniel, and Christian Egenhofer. ” Climate Change and Trade: Taxing Carbon at the Border.” Climate Policy 11, no. 5 (2010), 22-38.
Houser, Trevor. Leveling the Carbon Playing Field: International Competition and US Climate Policy Design. Peterson Institute, 2008.
Izard, Catherine F., Christopher L. Weber, and H. Scott Matthews. “Primary and Embedded Steel Imports to the US: Implications for the Design of Border Tax Adjustments.” Environmental Science & Technology Vol.44, no. 17 (2010): 6563-6569.
Jakob, Michael, Jan Christoph Steckel, and Ottmar Edenhofer. “Consumption-Versus Production-Based Emission Policies.” Annual Review of Resource Economics. Vol.6, no. 1 (2014): 297-318.
Lininger, Christian. Consumption-Based Approaches in International Climate Policy. Springer, 2015.
Marron, Donald B., and Eric T. Toder. “Tax Policy Issues in Designing a Carbon Tax.” The American Economic Review Vol. 104, no. 5 (2014): 563-568.
Morris, Adele, and Aparna Mathur. “A Carbon Tax in Broader US Fiscal Reform: Design and Distributional Issues.” Washington, DC: The Brookings Institution. Available at: http://www. brookings. edu/research/papers/2014/05/22-carbon-tax-in-broader-usfiscal-reform-morris. Additional studies are discussed in Section 5 (2014).
Sumner, Jenny, Lori Bird, and Hillary Dobos. “Carbon Taxes: A Review of Experience and Policy Design Considerations.” Climate Policy 11, no. 2 (2011): 922-943.
[1] Daniel, Gross and Christian Egenhofer. ” Climate Change and Trade: Taxing Carbon at the Border.” Climate Policy 11, no. 5 (2010): 26.
[2] Gros and Egenhofer 29
[3] Gros and Egenhofer 38
[4] Jakob, Michael, Jan Christoph Steckel, and Ottmar Edenhofer. “Consumption-Versus Production-Based Emission Policies.” Annual Review of Resource Economics. 6, no. 1 (2014): 298
[5]Michael, Steckel, and Edenhofer 299
[6] Sumner, Jenny, Lori Bird, and Hillary Dobos. “Carbon Taxes: A Review of Experience and Policy Design Considerations.” Climate Policy Vol.11, no. 2 (2011): 922
[7], Jenny, Bird, and Dobos 922
[8] Jenny, Bird, and Dobos, 938
[9] Combet, et al. “Carbon Tax and Equity: The Importance of Policy Design.” Critical Issues in Environmental Taxation (2010). 3
[10] Combet, et al., 5
[11] Combet, et al., 7
[12] Morris, Adele, and Aparna Mathur. “A Carbon Tax in Broader US Fiscal Reform: Design and Distributional Issues.” Washington, DC: The Brookings Institution. Available at: http://www. brookings. edu/research/papers/2014/05/22-carbon-tax-in-broader-usfiscal-reform-morris. Additional studies are discussed in Section 5 (2014).
[13] Ross, Astoria. Astoria, Ross. “Design of an International Trade Law Compliant Carbon Border Tax Adjustment.” The Arizona Journal of Environmental Law & Policy Vol.6, no. 491 (2015): 497
[14] Astoria, 499
[15] Izard, Catherine F., Christopher L. Weber, and H. Scott Matthews. “Primary and Embedded Steel Imports to the US: Implications for the Design of Border Tax Adjustments.” Environmental Science & Technology 44, no. 17 (2010): 6563
[16] Catherine, 6564
[17] Catherine, 6566
[18] Houser, Trevor. Leveling the Carbon Playing Field: International Competition and US Climate Policy Design. Peterson Institute, 2008. 5
[19] Trevor. Leveling the Carbon Playing Field: International Competition and US Climate Policy Design. 6
[20] Trevor 9
[21] Lininger, Christian. Consumption-Based Approaches in International Climate Policy. Springer, 2015. 9
[22] Christian 85
[23] Marron, Donald B., and Eric T. Toder. “Tax Policy Issues in Designing a Carbon Tax.” The American Economic Review 104, no. 5 (2014): 563
[24] Donald and Toder, 563
