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Spend, transfer, or repay. What to do with all the money from the EU carbon border tax?
Client/Funding Institution
Anniversary Fund of the Oesterreichische Nationalbank
Abstract
The project addresses the impact of the European carbon border adjustment (CBA) mechanism. The research project estimates the effects of a carbon border tax on trade, GDP, and welfare for alternative spending scenarios for the carbon border tax revenues. This is explored with two different carbon border adjustment designs. The research will strive to contribute to the policy debate on the design of the CBA, and on the future of the EU budget in the context of new own resources.
Funded by the Anniversary Fund of the Oesterreichische Nationalbank (Project No. 18815).
Duration
October 2022 - September 2024
wiiw team Leader
wiiw Staff
Birgit Buschbom, Javier Flórez Mendoza, Oliver Reiter, David Zenz
Publications
- Impacts of the EU carbon border adjustment mechanism
- EU carbon border tax: General equilibrium effects on income and emissions
Keywords: climate change, carbon border tax, EU budget, structural gravity model, state aid, debt repayment.
Countries covered: EU Member States
Research Areas: International Trade, Competitiveness and FDI