Monjon, Stéphanie; Quirion, Philippe - Université Paris-Dauphine (Paris IX) - 2011
. We discuss their WTO‐compatibility and provide a quantitative assessment based on the partial equilibrium model CASE II. We conclude that, firstly, if the EU wants to implement such a border … adjustment, it should cover imports and exports rather than only imports, in order to maximise the impact on world emissions. Secondly, the import part should consist in an obligation to buy EU … ETS allowances rather than a tax, in order to maximise both the WTO‐compatibility and the impact on world emissions. Thirdly, both the import and the export adjustment should be based on the recently defined EU …