GTAP Resources: Resource Display
| GTAP Resource #7539 |
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"CBAM, Abatement Technology Adoption, and Trade Agreement: The Case of EU-Mercosur Partnership Agreement" by Yu, Wusheng, Laerke Jensbye and Francesco Clora Abstract Expanding the EU’s carbon border adjustment mechanism (CBAM) to cover other emission-intensive but “hard-to-abate” sectors such as agriculture has been mentioned in relevant policy debates. For an agricultural CBAM to be effective in motivating foreign producers to reduce emissions embodied in their exports (thus lowering global emissions), sizable trade flows should exist and producers can make use of available abatement technology. We use the recently concluded EU-Mercosur Partnership Agreement as an example to investigate the likely emission impacts of a potential EU agricultural CBAM. In the numerical analysis, we first simulate the agricultural trade impacts of the EU-Mercosur agreement. We further compare the emission reduction outcome under several trade policy scenarios under the hypothetical CBAM, including the actual bilateral trade policy concessions contained in the EU-Mercosur agreement and a hypothetical scenario with full bilateral trade liberalization. We conclude with a set of observations on the effectiveness of CBAM in relation to the degree of trade policy liberalization and access to emission abatement technologies. |
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- Climate change policy - Trade and the environment - Preferential trading arrangements - Model extension/development |
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Public Access  Paper (68.5 KB) Replicated: 0 time(s)Restricted Access No documents have been attached. Special Instructions No instructions have been specified. |
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Last Modified: 9/15/2023 2:05:45 PM
