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dc.contributor.advisorBalistreri, Edward J. (Edward Jay)
dc.contributor.authorYonezawa, Hidemichi
dc.date.accessioned2007-01-03T08:34:07Z
dc.date.accessioned2022-02-03T11:53:00Z
dc.date.available2007-01-03T08:34:07Z
dc.date.available2022-02-03T11:53:00Z
dc.date.issued2012
dc.date.submitted2012
dc.identifierT 7105
dc.identifier.urihttps://hdl.handle.net/11124/73666
dc.description2012 Fall.
dc.descriptionIncludes illustrations.
dc.descriptionIncludes bibliographical references.
dc.description.abstractFaced with the failure in coordinating a global policy to limit carbon emissions, one of the key issues in climate policy is carbon leakage, where emissions reductions in regulated regions stimulate emissions in unregulated regions. Many studies discuss border carbon adjustments to mitigate leakage and propose a rate of adjustments based on the carbon price (a Pigouvian rate). But, the question arises, is such a prescription optimal? This thesis analyzes optimal border carbon adjustments, specifically showing that the conventional Pigouvian rates are suboptimal. In Chapter 2, a general-equilibrium simulation model shows that the optimal trade policy is to set a net import tariff less than the Pigouvian rate. In Chapter 3, an analytical model demonstrates that the optimal import tariff consists of both the marginal social damage of the externality and the ability of the home country to influence foreign prices and thus foreign production. Furthermore, the model proves that the optimal rate is less than the Pigouvian rate because of the foreign consumer response. Chapter 4 shows that the findings in the previous chapters hold in an empirical context. Specifically, a general-equilibrium simulation model calibrated to the GTAP 7.1 global dataset demonstrates that the optimal border adjustments are smaller than the Pigouvian rates by 20% to 50% depending on export policy. This thesis contributes to the ongoing discussion of border carbon adjustments by showing the suboptimality of Pigouvian rates in both the theoretical and empirical contexts. Admittedly, using Pigouvian rates to set border adjustments provides a simple rule. The tradeoff between the efficiency improvement that I explore, and the cost increase related to implementing and maintaining the optimal rates (compared to the Pigouvian rates) should be considered.
dc.format.mediumborn digital
dc.format.mediumdoctoral dissertations
dc.languageEnglish
dc.language.isoeng
dc.publisherColorado School of Mines. Arthur Lakes Library
dc.relation.ispartof2012 - Mines Theses & Dissertations
dc.rightsCopyright of the original work is retained by the author.
dc.subjectclimate policy
dc.subjectgeneral equilibrium model
dc.subjectcarbon leakage
dc.subjectborder tax adjustments
dc.subjecttrade and carbon taxes
dc.subject.lcshEquilibrium (Economics)
dc.subject.lcshCarbon taxes
dc.subject.lcshClimatic changes
dc.subject.lcshEnvironmental impact charges
dc.subject.lcshEnvironmental economics
dc.titleTheoretic and empirical issues related to border carbon adjustments
dc.typeText
dc.contributor.committeememberKaffine, Daniel
dc.contributor.committeememberEggert, Roderick G.
dc.contributor.committeememberWalls, Michael
dc.contributor.committeememberDelborne, Jason
thesis.degree.nameDoctor of Philosophy (Ph.D.)
thesis.degree.levelDoctoral
thesis.degree.disciplineEconomics and Business
thesis.degree.grantorColorado School of Mines


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