GTAP Resources: Resource Display
| GTAP Resource #7877 |
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"Extending the Scope of the EU CBAM: The Case of Downstream Goods" Authors: Weitzel, Matthias, Rafael Garaffa and Camille Van Der Vorst Abstract The EU’s carbon border adjustment mechanism (CBAM) levels the playing field in several carbon intensive sectors, including iron & steel and aluminium. However, the phase-in of CBAM and accompanying phase-out of free allowances in the EU introduces new risks of leakage in sectors that use metals covered by CBAM as an input. Higher input prices for metals may lead to relocation of downstream manufacturing outside the EU. We here quantify this effect based on model simulations with the computable general equilibrium (CGE) model JRC-GEM-E3. We then quantify how much this of this leakage can be reduced under scenarios that extend CBAM to downstream products. We also show trade and output effects for the affected downstream sectors as well as changes in consumer prices. The study uses a novel approach to implement CBAM scenarios in CGE models, making use of bottom-up information at the product level to calibrate implementation at the broader sectoral level. |
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- Climate change policy - Trade and the environment - Advances in quantitative methods - Model extension/development - European Union |
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Public Access  GTAP Resource 7877 (236.0 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: 4/20/2026 1:44:43 PM
