This paper analyzes the effects of carbon taxation and border carbon adjustments in a setting where firms can choose to respond to taxation by abating or by outsourcing part of their production. For this, this paper sets up a general equilibrium trade model, calibrated with world trade and input-output data that features a discrete choice production structure, where the producers choose between outsourcing or abating emission-intensive intermediate...
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2024/01/11
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Policy Research Working Paper
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WPS10665
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1
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2024/01/11
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Disclosed
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Trade, Outsourcing, and the Environment
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Citation
Artuc,Erhan; Sommer,Konstantin Heinrich Ludwig.
Trade, Outsourcing, and the Environment (English). Policy Research working paper ; no. WPS 10665; RRR; PLANET Washington, D.C. : World Bank Group. http://documents.worldbank.org/curated/en/099321301112414585