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Executive Summary
In this paper, the authors estimate how large such border tax adjustment tariffs would be in practice, and then examine their economic and environmental effects using G-Cubed, a detailed multi-sector, multi-country model of the world economy. They find that the tariffs would be small on most traded goods, would reduce leakage of emissions reduction very modestly, and would do little to protect import-competing industries. They conclude that the benefits produced by border adjustments would be too small to justify their administrative complexity or their deleterious effects on international trade.