Data and Code for: Carbon Border Adjustments, Climate Clubs, and Subsidy Races When Climate Policies Vary

Principal Investigator(s): View help for Principal Investigator(s) Kimberly Clausing, UCLA School of Law; Catherine Wolfram, MIT Sloan

Version: View help for Version V1

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Project Citation:

Clausing, Kimberly, and Wolfram, Catherine. Data and Code for: Carbon Border Adjustments, Climate Clubs, and Subsidy Races When Climate Policies Vary. Nashville, TN: American Economic Association [publisher], 2023. Ann Arbor, MI: Inter-university Consortium for Political and Social Research [distributor], 2023-09-27. https://doi.org/10.3886/E192048V1

Project Description

Summary: Carbon Border Adjustments, Climate Clubs, and Subsidy Races When Climate Policies Vary

Abstract: Jurisdictions adopt heterogeneous climate policies that vary both in terms of ambition and in terms of policy approach, with some jurisdictions pricing carbon and others subsidizing clean production. We distinguish two types of policy spillovers associated with diverse policy approaches to climate change. First, when countries have different levels of climate ambition, free-riders will benefit at the expense of more committed countries. Second, when countries pursue different approaches, carbon-intensive producers within cost-imposing jurisdictions will be at a relative competitive disadvantage compared with producers in subsidizing jurisdictions. Carbon border adjustments and climate clubs are attempts to respond to these policy spillovers, but when countries have divergent policy approaches, one policy alone will not be able to address both types of spillovers. We also consider the policy dynamics that result from carbon border adjustments and climate clubs; both have the potential to encourage upward harmonization of climate policy, but they come with risks. Further, the pressures of international competition in the presence of divergent climate policy approaches may result in subsidy races, which come with their own potential risks and benefits.

Scope of Project

JEL Classification:
      F18 Trade and Environment
      H23 Taxation and Subsidies: Externalities; Redistributive Effects; Environmental Taxes and Subsidies
      Q54 Climate; Natural Disasters and Their Management; Global Warming
      Q58 Environmental Economics: Government Policy

Geographic Coverage: aggregate country level data across the world

Time Period(s): 2019 – 2021

Collection Date(s): 10/1/2022 – 5/15/2023

Universe: countries, and in one case, industries

Data Type(s): aggregate data

Collection Notes: This is all publicly available data collected from web sites.

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Published Versions

V1 [2023-09-27]

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