GTAP Resources: Resource Display
| GTAP Resource #7705 |
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"A Carbon Border Adjustment Mechanism (CBAM) in the EU Agricultural Sector" Authors: Gouel, Christophe, Alan Matthews, Maria Cristina Mitaritonna and Yu Zheng Abstract Extending carbon pricing to agriculture is key to reaching EU net zero objectives, but the sector's exposure to international competition and its close links to land use and land-use change (LUC) raise concerns about carbon leakage and competitiveness loss. This paper analyzes the effects of pricing agricultural GHG emissions in the EU using a newly developed land-use version of the MIRAGE CGE model. A key feature is a multinomial logit module for land allocation that tracks physical areas across crops, pastures, and forests, enabling a more realistic representation of LUC emissions and deforestation dynamics. We simulate five scenarios ranging from a standalone carbon tax to various CBAM designs including export rebates and a carbon consumption tax, within an EU–EFTA climate club. We find that unilateral carbon pricing generates substantial leakage, driven mainly by the export competitiveness channel. A CBAM on imports alone is insufficient; combining it with export rebates is necessary to fully contain leakage. LUC emissions amplify the stakes in ways that existing deforestation regulations cannot resolve. |
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- Climate change policy - Land use - Trade and the environment - Agricultural policies - Model extension/development |
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Public Access  GTAP Resource 7705 (4.7 MB) Replicated: 0 time(s)Restricted Access No documents have been attached. Special Instructions No instructions have been specified. |
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Last Modified: 4/15/2026 11:27:11 AM
