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Border carbon adjustment in agriculture: theoretical thoughts

Author

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  • Spiegel, Alisa
  • Fournier Gabela, Julio G.
  • Heidecke, Claudia
  • Söder, Mareike
  • Freund, Florian
  • Gocht, Alexander
  • Banse, Martin

Abstract

Many national climate policies are already using or planning to implement different carbon pricing schemes aiming to reach climate mitigation target efficiently. Inadequate international cooperation, however, can lead to emission leakage. To prevent this, several concepts of border carbon adjustment (BCA) have been developed for the energy sector. Despite the significant role of agriculture in global greenhouse gas (GHG) emissions and ongoing debates on agri-food carbon pricing, to date, there is no concrete BCA proposal for the agricultural sector. Our qualitative research aims to derive alternative agri-food BCA designs discussing on potential bottlenecks and suggesting solutions, while hypothesizing on potential effects of a BCA on GHG emission, trade balance, land use, and welfare. We conclude with outlining quantitative model-based research required to assess alternative agri-food BCA designs and to test the derived hypotheses.

Suggested Citation

  • Spiegel, Alisa & Fournier Gabela, Julio G. & Heidecke, Claudia & Söder, Mareike & Freund, Florian & Gocht, Alexander & Banse, Martin, 2021. "Border carbon adjustment in agriculture: theoretical thoughts," 61st Annual Conference, Berlin, Germany, September 22-24, 2021 317084, German Association of Agricultural Economists (GEWISOLA).
    • Handle: RePEc:ags:gewi21:317084
    DOI: 10.22004/ag.econ.317084
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    References listed on IDEAS

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    Keywords

    Agricultural and Food Policy; International Relations/Trade;

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