How protective are border carbon taxes for Canadian industry? The critical role of US emissions pricing

Christoph Böhringer et al.

Canadian Journal of Economics / Revue Canadienne D'Economique2025https://doi.org/10.1111/caje.12753article
AJG 3ABDC A
Weight
0.41

What the paper says

Border carbon taxes are considered as an important instrument to promote sustainable practices abroad and to level the playing field for domestic emission‐intensive and trade‐exposed (EITE) industries. We find that US emissions pricing plays a critical role in the effectiveness of border carbon taxes in protecting the international competitiveness of Canadian EITE producers. Border carbon taxes are more effective when the US follows the other OECD countries with stringent CO 2 emissions pricing than when the US abstains from emissions pricing. In the latter case, border carbon taxes reduce the competitiveness of Canadian EITE export supply to the US (Canada's most important export destination), weakening the initial protective effect of border carbon taxes on the Canadian domestic market.

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https://doi.org/https://doi.org/10.1111/caje.12753

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@article{christoph2025,
  title        = {{How protective are border carbon taxes for Canadian industry? The critical role of US emissions pricing}},
  author       = {Christoph Böhringer et al.},
  journal      = {Canadian Journal of Economics / Revue Canadienne D'Economique},
  year         = {2025},
  doi          = {https://doi.org/https://doi.org/10.1111/caje.12753},
}

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How protective are border carbon taxes for Canadian industry? The critical role of US emissions pricing

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Evidence weight

0.41

Balanced mode · F 0.40 / M 0.15 / V 0.05 / R 0.40

F · citation impact0.25 × 0.4 = 0.10
M · momentum0.55 × 0.15 = 0.08
V · venue signal0.50 × 0.05 = 0.03
R · text relevance †0.50 × 0.4 = 0.20

† Text relevance is estimated at 0.50 on the detail page — for your query’s actual relevance score, open this paper from a search result.