The European Commission’s proposal for a Carbon Border Adjustment Mechanism (CBAM) to strengthen the existing Emissions Trading System (ETS) is a policy initiative that has the potential to impact carbon emissions outside of the EU. The question is whether CBAM does indeed provide an incentive...

Among economists and policy makers more general, the fuel efficiency standard for cars and the fuel tax have been the subject of extensive debate. The major benefits of stricter fuel efficiency standards and higher fuel taxes are the reduction of Greenhouse gas emissions and the reduced oil...