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The legal interface between carbon border measures and trade rules

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  • Ludivine Tamiotti

Abstract

The development of climate policies has gained pace over the past two decades, and their scope and complexity have increased. It is therefore essential to better understand their key features in order to draw a clearer picture of their overall effect and potential impact on trade. WTO rules and case law that relate generally to environmental issues as well as other key disciplines are relevant to the examination of climate border measures: several core principles of the GATT, including the disciplines on tariffs, the general non-discrimination principle, and the general exceptions, as well as WTO disciplines on subsidies. WTO rules are explored for their relevance to climate-related border measures. For a possible justification of a trade restrictive measure, such as a border carbon adjustment, certain criteria need to be fulfilled with a view to avoiding an undue situation of green protectionism.

Suggested Citation

  • Ludivine Tamiotti, 2011. "The legal interface between carbon border measures and trade rules," Climate Policy, Taylor & Francis Journals, vol. 11(5), pages 1202-1211, September.
    • Handle: RePEc:taf:tcpoxx:v:11:y:2011:i:5:p:1202-1211
    DOI: 10.1080/14693062.2011.592672
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    Citations

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    Cited by:

    1. Nicole A. MATHYS & Jaime DE MELO, 2012. "Reconciling Trade and Climate Policies," Working Papers P37, FERDI.
    2. Christoph Böhringer & Knut Einar Rosendahl & Halvor Storrøsten, 2021. "Smart hedging against carbon leakage [An overview of the GTAP 9 data base]," Economic Policy, CEPR, CESifo, Sciences Po;CES;MSH, vol. 36(107), pages 439-484.
    3. Böhringer, Christoph & Rosendahl, Knut Einar & Storrøsten, Halvor Briseid, 2017. "Robust policies to mitigate carbon leakage," Journal of Public Economics, Elsevier, vol. 149(C), pages 35-46.
    4. Kevin R. Kaushal & Knut Einar Rosendahl, 2020. "Taxing Consumption to Mitigate Carbon Leakage," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 75(1), pages 151-181, January.
    5. Florian Rey & Thierry Madiès, 2021. "Addressing the concerns about carbon leakage in the implementation of carbon pricing policies: a focus on the issue of competitiveness," Economia e Politica Industriale: Journal of Industrial and Business Economics, Springer;Associazione Amici di Economia e Politica Industriale, vol. 48(1), pages 53-75, March.
    6. Lian-Biao Cui & Ma-Lin Song, 2017. "Designing and Forecasting the Differentiated Carbon Tax Scheme Based on the Principle of Ability to Pay," Asia-Pacific Journal of Operational Research (APJOR), World Scientific Publishing Co. Pte. Ltd., vol. 34(01), pages 1-25, February.
    7. Edward J. Balistreri & Daniel T. Kaffine & Hidemichi Yonezawa, 2019. "Optimal Environmental Border Adjustments Under the General Agreement on Tariffs and Trade," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 74(3), pages 1037-1075, November.
    8. Sheldon, Ian & McCorriston, Steve, 2014. "Climate Policy and Border Measures: The Case of the US Aluminum Industry," 2014 Annual Meeting, July 27-29, 2014, Minneapolis, Minnesota 169544, Agricultural and Applied Economics Association.
    9. Christoph Böhringer & Knut Einar Rosendahl & Halvor Briseid Storrøsten, 2015. "Mitigating carbon leakage: Combining output-based rebating with a consumption tax," ZenTra Working Papers in Transnational Studies 54 / 2015, ZenTra - Center for Transnational Studies.
    10. Birgit Bednar-Friedl & Veronika Kulmer & Thomas Schinko, 2012. "The effectiveness of anti-leakage policies in the European Union: results for Austria," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 39(2), pages 233-260, May.
    11. Springmann, Marco, 2012. "Carbon tariffs for financing clean development," Conference papers 332255, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    12. Farrahi Moghaddam, Reza & Farrahi Moghaddam, Fereydoun & Cheriet, Mohamed, 2013. "A modified GHG intensity indicator: Toward a sustainable global economy based on a carbon border tax and emissions trading," Energy Policy, Elsevier, vol. 57(C), pages 363-380.
    13. Kaushal, Kevin Raj, 2018. "Emission price, output-based allocation and consumption tax: Optimal climate policy in the presence of another country’s climate policy," Working Paper Series 8-2018, Norwegian University of Life Sciences, School of Economics and Business.
    14. Jaime de Melo & Nicole A. Mathys, 2012. "Concilier les politiques commerciales et les politiques climatiques," Revue d’économie du développement, De Boeck Université, vol. 20(2), pages 57-81.
    15. Liu, Liwei & Chen, Chuxiang & Zhao, Yufei & Zhao, Erdong, 2015. "China׳s carbon-emissions trading: Overview, challenges and future," Renewable and Sustainable Energy Reviews, Elsevier, vol. 49(C), pages 254-266.

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