CWRU Researcher Explores Opportunities and Limitations of Neutral Carbon Tarrifs

Juscelino Colares, Schott-van den Eynden Professor of Business Law and Professor of Political Science, has published an article in the top-peer review journal American Law and Economics Review, to explore the opportunities and limitations of neutral carbon tariffs. This article discusses the consistency, yet inefficiency of border carbon adjustments. 

This work is groundbreaking in that it presents the first formal definition of the National Treatment Principle of the General Agreement of Tariffs and Trade. Further, it compares the formalized neutral tariff concept to different levels of economic efficiency. 

The balance between the effectiveness of border tax adjustments at addressing carbon leakage, and protectionist pressures, presents a challenge for policy makers seeking to curb global green house gas emissions. 

The article will appear in print in American Law and Economics Review's November 2017 issue (Volume 19, Number 2, Fall 2017). The abstract and full article can be found electronically here