Border Adjustments
Border adjustments, also known as border tax adjustments or border carbon adjustments, are taxes on imports and rebates on exports that account for variance in carbon pricing policies across different countries. RFF scholars are studying the design of border adjustments, their implementation costs, and their impacts on public policy questions, including their impact on possible leakage of economic activities away from countries with carbon pricing policies.
Pricing Carbon at the Border
Read a summary of recent scholarship on border adjustments and its application to policy questions being addressed in the European Union.
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From the Blog: US Border Tax Adjustment Framework
Implementing a Framework for Border Tax Adjustments in US Greenhouse Gas Tax Legislation and Regulations
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Report: Policy Guidance for US Greenhouse Gas Tax
Border Tax Adjustments for Products of Energy-Intensive, Trade-Exposed and Other Industries
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Press Release — Oct 21, 2021
Accounting for Greenhouse Gas Emissions in International Trade
The greenhouse gas index can be used in border adjustments to level the playing field in international trade by allowing companies and regulators to account for the emissions required to produce greenhouse gas-intensive goods. A new pair of working papers demonstrates how to determine the index using information already known (and much of it publicly reported) by manufacturers in the United States and many other nations.
Common Resources — Oct 21, 2021
Accounting for Emissions in Global Trade with a Greenhouse Gas Index
RFF’s Brian Flannery explains how a greenhouse gas index can account for the emissions of internationally traded goods, and he discusses its potential applications in the design of border adjustments.
Working Paper — Oct 21, 2021
Determining the Greenhouse Gas Index for Covered Products of Specific Manufacturers
This working paper explores the GHG index, a central concept used to determine border tax adjustments for covered products.
Working Paper — Oct 21, 2021
Determining the Greenhouse Gas Index for Covered Products of Specific Manufacturers
This working paper explores the GHG index, a central concept used to determine border tax adjustments for covered products.
Working Paper — Oct 21, 2021
Export Rebates and Import Charges for Border Tax Adjustments Under an Upstream US GHG Tax: Estimates and Methods
In this working paper, RFF researchers examine how representative estimates of export rebates and import charges can be determined using available information.
Issue Brief — Oct 5, 2021
Addressing the Leakage and Competitiveness Risks of Climate Policy
This issue brief introduces key policy principles to mitigate the risks involved in implementing ambitious climate goals on the federal level.
Workshop/Seminar — Oct 27, 2015
Addressing Competitiveness Concerns in a Carbon Tax: What Are the Options?
This workshop focused on trade, competitiveness, and possible policy approaches, featuring the presentation and discussion of four new papers.
Workshop/Seminar — Nov 14, 2012
Market-based Emissions Regulation and Industry Dynamics
An RFF academic seminar on Market-based Emissions Regulation and Industry Dynamics.
Workshop/Seminar — Sep 5, 2012
The Role of Border Measures in Unilateral Climate Policy
Panelists at this First Wednesday Seminar highlighted recent research on the efficiency and distributional impacts of border measures.
Press Release — Oct 21, 2021
Accounting for Greenhouse Gas Emissions in International Trade
The greenhouse gas index can be used in border adjustments to level the playing field in international trade by allowing companies and regulators to account for the emissions required to produce greenhouse gas-intensive goods. A new pair of working papers demonstrates how to determine the index using information already known (and much of it publicly reported) by manufacturers in the United States and many other nations.
Media Highlight — Sep 8, 2021
The U.S. Makes Carbon Pricing More Complicated Than It Needs to Be
The Washington Post and Bloomberg publish an opinion piece that includes a detailed reference of RFF work on border carbon adjustments.
Media Highlight — Aug 2, 2021
Taxing Climate-Harming Imports is Hard. Here's One Approch
A story in E&E News dives into a new study by RFF scholars on how to create border taxes between countries that haven't established a carbon price.
Common Resources — Oct 21, 2021
Accounting for Emissions in Global Trade with a Greenhouse Gas Index
RFF’s Brian Flannery explains how a greenhouse gas index can account for the emissions of internationally traded goods, and he discusses its potential applications in the design of border adjustments.
Common Resources — Oct 19, 2021
Designing Border Carbon Adjustments When Carbon Is Not Explicitly Priced
Implementing border carbon adjustments can be a challenge when the countries involved don’t have a carbon price. Recent RFF research considers how to design border carbon adjustments around local variations in carbon pricing policy.
Resources Radio — Sep 14, 2021
Border Tax Adjustments, with Brian Flannery
Brian Flannery describes the challenge of imposing border adjustments on goods from countries whose climate policies aren’t sufficiently ambitious.