Op-Ed
February 20, 2025
Practicality of Carbon Border Adjustments in a Carbon Tax
This article was originally published in the February 6, 2025, issue of Tax Notes Federal.
This article reviews two methods used to border adjust a carbon price: the EU Carbon Border Adjustment Mechanism and a proposed method developed by two U.S.-based experts called the greenhouse gas index. It compares the two frameworks and discusses their similarities and differences. It concludes by arguing that border adjustments present unique challenges but, if designed well, would be an important part of a domestic carbon price in the United States.
Link to the PDF of the article.
