This paper explores in a general equilibrium framework the welfare and sectoral implications of an optimally designed system of border tax adjustments (BTA) on the imports of energy-intensive industries. Recently, several propositions have been made by policy makers and researchers to use BTA as...

In an economy with substantial informality, a carbon tax can produce fiscal co-benefits that improve economic performance in addition to reducing carbon dioxide emissions. If the carbon tax revenues are used to cut production or labor taxes on formal firms, particularly those not in the energy...