This paper examines how border carbon adjustments (BCAs) may address the consequences of uncoordinated global climate action, focusing on the economic impacts for Canada. We investigate these impacts under different BCA design features and by considering a coalition of countries and regions that adopt BCAs. We find that when Canada is within a coalition of BCA-implementing countries including the United States, BCA measures in the form of import tariffs reduce Canada's carbon leakage and boost domestic and foreign competitiveness. We show that these results may change if Canada imposes BCAs on a different set of sectors than the rest of the coalition or includes export rebates and free emissions allowances to firms. When Canada remains in the coalition while the United States does not, we show that Canada's carbon leakage increases, domestic competitiveness weakens, and foreign competitiveness improves.

中文翻译：

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边境碳调整对加拿大经济的影响


本文研究了边境碳调整 （BCA） 如何解决全球气候行动不协调的后果，重点关注对加拿大的经济影响。我们在不同的 BCA 设计特征下调查了这些影响，并考虑了采用 BCA 的国家和地区联盟。我们发现，当加拿大加入包括美国在内的 BCA 实施国联盟时，以进口关税形式实施的 BCA 措施减少了加拿大的碳泄漏并提高了国内外竞争力。我们表明，如果加拿大对与联盟其他部门不同的行业征收 BCA，或者包括对公司的出口退税和免费排放配额，这些结果可能会发生变化。当加拿大留在联盟中而美国没有时，我们表明加拿大的碳泄漏增加，国内竞争力减弱，而国外竞争力提高。