Conference Agenda
Overview and details of the sessions of this conference. Please select a date or location to show only sessions at that day or location. Please select a single session for detailed view (with abstracts and downloads if available).
Please note that all times are shown in the time zone of the conference. The current conference time is: 24th Aug 2026, 01:50:34am WEST
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Daily Overview |
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Egg-Timer: Carbon Markets and Climate Policy Location: D-107 Session Chair: Jiwon Im, Seoul National University | |
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The BAT Paradox: Can Carbon Pricing Lower Environmental Quality? 1: Western University, Canada; 2: York University, Canada; 3: Toronto Metropolitan University, Canada This paper analyzes the effects of a border adjustment tax on aggregate emissions in a framework where firms choose abatement endogenously while competing in differentiated-product markets. Within this setting, the policy induces producers with high baseline emissions to intensify abatement, thereby reducing emission intensity at the product level. These abatement responses, however, modify relative prices and redirect consumer substitution across varieties, so aggregate emissions do not necessarily fall. A decomposition into scale, technique, and composition effects reveals that market-level reallocation can dominate technological improvements in emission intensity. This BAT paradox underscores how the interaction between consumer substitution patterns and firm-level abatement choices governs the environmental effectiveness of border carbon adjustments. | |