Environment and Energy, June, 2008

This paper discusses emerging proposals for border tax adjustments (BTAs) to accompany commitments to reduce carbon emissions in the European Union, the United States and other OECD economies. The rationale offered for such border adjustments is that various entities, such as the EU, if making commitments to reduce emissions that go beyond those undertaken in other regions of the world, impose added costs on domestic producers which create a competitive disadvantage for them