Full Title: MAKING BORDER CARBON ADJUSTMENTS WORK IN LAW AND PRACTICE
Author(s): Adele C. Morris
Publisher(s): TAX POLICY CENTER URBAN INSTITUTE & BROOKINGS INSTITUTION
Publication Date: July 1, 2018
Full Text: Download Resource
Description (excerpt):
This paper addresses issues relating to the creation of border carbon adjustments (BCAs) as part of a carbon
tax. A carbon tax that is imposed only in the U.S. could put American firms at a competitive disadvantage. A
BCA could level the playing field so that U.S. and foreign-firms face the same greenhouse gas tax cost of
producing for consumption in any given country. The BCA would tax the carbon content of imports and rebate
carbon tax costs on U.S. exports. While simple in concept, BCAs raise numerous issues in practice. Although
solutions are available, they are unlikely to be elegant.