APL (Ajiken Power Lunch)

APL (Ajiken Power Lunch) is a lunchtime workshop open to public, including IDE staffs, visiting research fellows, IDEAS students, outside researchers and graduate students. This workshop provides a platform for presentation of any work in progress where we can discuss in either English or Japanese.

Those who would attend a seminar are asked to announce yourself to receptionists on your arrival at the IDE and to obtain APL Organizers' signature on your admission card after the seminar.

Thursday, 25th of January, 12:00 to 13:15

Institute of Developing Economies, Japan External Trade Organization C23 Meeting Room 　

Increasingly it is the case that countries with greenhouse gas mitigation policies are implementing border carbon adjustments (BCA) — that is, charges on the carbon embodied in imports from regions without carbon pricing. Given divergent climate policy ambitions across jurisdictions, BCA to foster destination- based carbon pricing have emerged as a salient policy instrument. Competitiveness concerns for energy-intensive industries subjected to increasing CO2 prices have sparked a willingness in climate-ambitious countries to adopt BCA which had been viewed as too controversial because of their potential to create trade disputes. The quantitative estimates for BCA impacts differ substantially – not only with respect to the magnitude of specific effects but even with respect to their direction. This talk will summarize how the economic and environmental effects of BCA policies depend on (i) the input-output data characterizing initial heterogeneities of production, consumption and trade patterns across countries, (ii) the policy design of BCA, and, (iii) structural assumptions on economic responses, in particular with respect to international trade mechanisms.

Professor Tom Rutherford, University of Wisconsin-Madison

Ian Coxhead