Full Title: Projected Effects of the Foreign Pollution Fee Act of 2025
Author(s): Kevin Rennert, Mun Ho, Katarina Nehrkorn, and Milan Elkerbout
Publisher(s): Resources for the Future
Publication Date: May 21, 2025
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Description (excerpt):
This issue brief studies the economic effects of the 2025 Foreign Pollution Fee Act using Resources for the Future’s Global Economic Model.
Carbon–intensity-based border measures, in which a country imposes tariffs on imported goods according to their carbon emissions from each unit of production, have emerged as a key element of the trade and climate policy conversation in the United States and abroad. Proponents of such measures in the US Congress have cited multiple potential benefits, including supporting domestic competitiveness, reducing emissions in US-consumed goods, and reducing the emissions intensity of domestic manufacturing.