Border Adjustments Could Protect Domestic Industries from Climate Policy Impacts
Researchers used a computer model to study how border adjustments affect the economy under climate change rules. The model looked at different regions and industries from 2004 to 2020. The results show that border adjustments can help reduce pollution moving to other countries but the impact is small. They also found that these adjustments can help certain industries compete better internationally, particularly benefiting the Japanese iron-steel sector. Overall, border adjustments have limited effects on the economy and people's well-being.