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Coordinating Climate and Trade Policies: Pareto Efficiency and the Role of Border Tax Adjustments
WP/12/289

This paper explores the role of trade instruments in globally efficient climate policies, focusing on the central issue of whether some form of border tax adjustment (BTA) is warranted when carbon prices differ internationally. It shows that tariff policy has a role in easing cross-country distributional concerns that can make non-uniform carbon...
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