Taxing carbon at the border is a lot more complicated than you may think, explains James Bushnell at the Energy Institute at Haas. The EU’s Carbon Border Adjustment Mechanism (CBAM) imposes a tax on imported goods that is designed to reflect the carbon content of those goods. But CBAM has flaws that must be addressed. It taxes the carbon in imported inputs supplied to EU producers, but not the carbon of those same inputs if they are imported as … [Read more...]
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