Climate Change: Are Border Adjustment Measures only the Third-Best Option (Out of Three)?
Border Adjustment Measures (BAM) have been discussed as a tool to equalize costs that industries with stringent greenhouse gas requirements have to bear, as some international competitors do not face these costs and allegedly enjoy a free ride. At a workshop of the German Federal Environment Agency (UBA), Nils Meyer-Ohlendorf and Michael Mehling discussed whether BAM are an adequate tool to address competitiveness concerns arising from the EU's ambitious climate change policies.
In the presentation, Nils Meyer-Ohlendorf and Michael Mehling ask various critical questions, which yet await a sufficient answer. The calculation of BAM raises particularly difficult questions.
A paper [pdf, 30 KB, English] summarizes the most relevant findings.