EU carbon border tax: General equilibrium effects on income and emissions
25 September 2024 10:00 am CEST
Presentation of the final results of the Jubilee Fund project by Javier Florez-Mendoza (wiiw)
Venue
wiiw Library, second floor, Rahlgasse 3, 1060 Vienna, Austria
Description
Join us for our upcoming event where we will present the findings from our project ‘Spend, transfer, or repay. What to do with all the money from the EU carbon border tax?’.
This study employs a quantitative trade model to globally assess the implications of the EU carbon border adjustment mechanism (CBAM) on trade flows, welfare and CO2 emissions. We quantify the general equilibrium effects on EU members and non-members under a carbon tax price, including a sector-level composition, and compare the results to a scenario including export rebates. For the EU27 we find an increase in the terms-of-trade and small positive welfare effects, whereas there are small negative effects on real wages. Non-European countries face a decline in the terms of trade and a small welfare loss, as well slightly declining real wages. Global CO2 emissions are marginally reduced, however slightly increase in the EU27 due to specialisation effects.
Programme
10:00 - 10:05 Welcome & Introduction
Robert Stehrer (Scientific Director, wiiw)
10:05 - 10:40 Presentation of the results
Javier Florez-Mendoza (wiiw)
Study: EU carbon border tax: General equilibrium effects on income and emissions
10:40 - 11:00 Q&A and Discussion
Moderation: Robert Stehrer (wiiw)
This event takes place in the framework of the project ‘Spend, transfer, or repay. What to do with all the money from the EU carbon border tax?’ which is financed by the Anniversary Fund of the Oesterreichische Nationalbank (Project No. 18815). Support provided by Oesterreichische Nationalbank for this research is gratefully acknowledged.