Iranian Energy Economics

Effect of imposing Carbon Border Adjustments on Carbon emission in Iran’s Industry sector after the Paris Agreement

Articles in Press

Document Type : Research Paper

Authors

Abbas Memarnejad 1
sheyda Nematollahi Sarvestani 2
Teimor Mohammadi 3

1 assistant professor, Department of Economics , School of Management and Economics - - Islamic Azad University Science and Research Branch , Tehran , Iran

2 PhD Student, Management and Economic faculty, Science and research branch, Islamic Azad University,

3 Faculty of Economics, Allameh Tabatabai University

https://doi.org/10.22054/jiee.2024.76836.2051
Abstract
The implementation of the mechanism of carbon border adjustments or carbon tariffs as a tool to deal with carbon leakage and reducing the competitiveness of production, was implemented by the European Union in October 2023 under the transitional phase and it will be implemented under the definitive phase from January 2026. Some countries, including the United States of America and Japan, have also predicted similar policies. This is while developing and developed countries have committed to take measures to combat climate change and reduce carbon emissions based on the Paris Agreement. This shows the concern of countries applying carbon tariffs because of carbon leakage even after the creation of the Paris Agreement. Considering that the European Union has announced that it will first apply carbon tariffs to energy industries, this study uses the GTAP-E model to investigate the change in the amount of carbon dioxide emissions in Iran's industries as a result of the imposing of carbon tariffs by the European Union, the Japan, the United States of America and all regions on Iran's energy intensive industries. The statistical of the research includes 141 regions and 65 section in the GTAP10 data base that published in 2019. The estimation of the model shows that under all four scenarios, the amount of production and carbon dioxide emissions will decrease in the energy-intensive industries sector and the entire industries of Iran.

Keywords

"؛ carbon tariff"؛ energy intensive industries"؛ Iran&rsquo؛ s industry"؛ carbon emission"؛
"؛ Paris Agreement"
Subjects
Iranian Energy Economics

Articles in Press, Accepted Manuscript
Available Online from 07 February 2024

  • Receive Date 07 December 2023
  • Revise Date 06 February 2024
  • Accept Date 07 February 2024
  • First Publish Date 07 February 2024
  • Publish Date 07 February 2024

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