OPTIMAL ENVIRONMENTAL BORDER ADJUSTMENTS UNDER THE GENERAL AGREEMENT ON TARIFFS AND TRADE
Climate change is a global problem, and while coordinated efforts to mitigate climate change can reduce the global cost of action, some countries may choose to not participate. To address “free rider concerns, countries might consider trade restrictions to prevent emissions from shifting to non-regulated regions. We analyze trade policies that could be used to support regional carbon reductions. November 2015.