| Project/Area Number |
23K12460
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| Research Category |
Grant-in-Aid for Early-Career Scientists
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| Allocation Type | Multi-year Fund |
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| Review Section |
Basic Section 07040:Economic policy-related
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| Research Institution | Hitotsubashi University |
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Principal Investigator |
Cheng Haitao 一橋大学, 社会科学高等研究院, 特任講師 (50906930)
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| Project Period (FY) |
2023-04-01 – 2028-03-31
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| Project Status |
Granted (Fiscal Year 2024)
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| Budget Amount *help |
¥4,680,000 (Direct Cost: ¥3,600,000、Indirect Cost: ¥1,080,000)
Fiscal Year 2027: ¥910,000 (Direct Cost: ¥700,000、Indirect Cost: ¥210,000)
Fiscal Year 2026: ¥910,000 (Direct Cost: ¥700,000、Indirect Cost: ¥210,000)
Fiscal Year 2025: ¥910,000 (Direct Cost: ¥700,000、Indirect Cost: ¥210,000)
Fiscal Year 2024: ¥910,000 (Direct Cost: ¥700,000、Indirect Cost: ¥210,000)
Fiscal Year 2023: ¥1,040,000 (Direct Cost: ¥800,000、Indirect Cost: ¥240,000)
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| Keywords | Carbon pricing / Carbon border adjustment / Abatement investments / Carbon leakage / International oligopoly / Emissions Trading / Border Carbon Adjustment / Pollution Haven / Carbon Leakage / Technology Transfer / border carbon adjustment / carbon markets / emission abatement / firm locations |
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| Outline of Research at the Start |
This project revisits border carbon adjustments in the presence of market-based emission permits. It analyzes how border carbon adjustments affect carbon prices, firms' investment in environmental R&D and location choices, countries' choices of emission permits, global emissions and welfare.
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| Outline of Annual Research Achievements |
In FY2024, I analyzed the home country's unilateral carbon taxes and border tax adjustments (BTAs) when firms can abate emissions. According to the findings, carbon taxes may not be effective in decreasing global emissions. Interestingly, an increase in the carbon tax rate can increase global emissions. High tax rates may discourage emission abatement. With fixed firm locations, no BTAs or partial BTAs with carbon-content tariffs can be more effective in reducing global emissions than full BTAs. When firm locations are endogenous, firms tend to produce in the foreign country to avoid the home carbon tax with no BTAs. However, with BTAs, high tax rates do not necessarily induce foreign production. Global emissions could be largest in the middle range of the tax rate.
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| Current Status of Research Progress |
Current Status of Research Progress
2: Research has progressed on the whole more than it was originally planned.
Reason
As has been planned, I completed further analysis of this project.
I attended many conferences and workshops from which I received many useful comments and suggestions.
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| Strategy for Future Research Activity |
In FY2025, I will consider emission permits rather than carbon taxes in my model. In addition, I will take into account the foreign country's environmental regulations. Finally, I will study how the two countries decide on their issuance of emission permits in the presence of border tax adjustments.
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