Title page
Contents
EXECUTIVE SUMMARY 1
INTRODUCTION 2
WHAT IS (AND ISN'T) A CBAM? 2
IT IS DIFFICULT TO JUSTIFY A CBAM 3
THE EU'S CBAM AIMS FOR-AND MISSES-CARBON NEUTRALITY 7
US PROPOSALS TARGETING IMPORTS AND CARBON EMISSIONS 9
FREER ECONOMIES ARE CLEANER ECONOMIES 14
POLICY RECOMMENDATIONS 16
CONCLUSION 17
APPENDIX 17
Table 1. List of US bills targeting trade-related carbon emissions 13
Figure 1. Developed countries have decoupled economic growth from carbon dioxide emissions 15
Figure 2. Environmental Kuznets curve 16
Figure A1. Negative production externality 18