000			01721nam a22001577a 4500
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100			_aClausing, Kimberly A.and Wolfram,Catherine _944191
245			_aCarbon border adjustments, climate clubs, and subsidy races when climate policies vary
260			_aThe Journal of Economic Perspectives
300			_a37(3), Summer, 2023: p.137-162
520			_aJurisdictions adopt climate policies that vary in terms of both ambition and policy approach, with some pricing carbon and others subsidizing clean production. We distinguish two types of policy spillovers from these diverse approaches. First, when countries have different levels of climate ambition, free-riders benefit at the expense of more committed countries. Second, when countries pursue different approaches, carbon-intensive producers within cost-imposing jurisdictions are at a relative competitive disadvantage compared with producers in subsidizing jurisdictions. Carbon border adjustments and climate clubs respond to these spillovers, but when countries have divergent approaches, one policy alone cannot address both spillovers. We also consider the policy dynamics arising from carbon border adjustments and climate clubs; both have the potential to encourage upward harmonization of climate policy, but come with risks. Further, the pressures of international competition may result in subsidy races, with attendant risks and benefits.- Reproduced https://www.aeaweb.org/articles?id=10.1257/jep.37.3.137
650			_aCarbon border adjustments, Climate clubs, Subsidy, Climate policies _944192
773			_aThe Journal of Economic Perspectives
906			_aCLIMATE CHANGE
942			_cAR