Kimberly A. Clausing’s research while affiliated with University of California, Los Angeles and other places

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Publications (6)


Strategic Climate Cooperation and Greenhouse Gas Price Coordination
  • Article
  • Full-text available

February 2024

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9 Reads

Intereconomics

Kimberly Clausing

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Peter Cramton

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Axel Ockenfels

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Catherine Wolfram
Download


Carbon Border Adjustments, Climate Clubs, and Subsidy Races When Climate Policies Vary

August 2023

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22 Reads

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24 Citations

Journal of Economic Perspectives

Jurisdictions adopt climate policies that vary in terms of both ambition and policy approach, with some pricing carbon and others subsidizing clean production. We distinguish two types of policy spillovers from these diverse approaches. First, when countries have different levels of climate ambition, free-riders benefit at the expense of more committed countries. Second, when countries pursue different approaches, carbon-intensive producers within cost-imposing jurisdictions are at a relative competitive disadvantage compared with producers in subsidizing jurisdictions. Carbon border adjustments and climate clubs respond to these spillovers, but when countries have divergent approaches, one policy alone cannot address both spillovers. We also consider the policy dynamics arising from carbon border adjustments and climate clubs; both have the potential to encourage upward harmonization of climate policy, but come with risks. Further, the pressures of international competition may result in subsidy races, with attendant risks and benefits.




Citations (4)


... By doing so, this study informs the next round of NDC announcements and enables decision-makers to make informed decisions about an ambitious and plausible range of 2035 emission reductions and associated tradeoffs under different policy conditions. Second, recent studies that have begun to explore expansions of current measures are based on single models 21,27 . This analysis builds on the above studies by providing additional models and policy scenarios to understand variations in potential policy responses. ...

Reference:

A multi-model study to inform the United States’ 2035 NDC
Climate Policy Reform Options in 2025
  • Citing Article
  • January 2024

SSRN Electronic Journal

... The encouraging results for the Multi-Determinant scenario assume that the MSP TG can broker a trade deal with the China TG to permit the MSP TG firms improved access to China TG markets. While this may seem unrealistic today, research from Bown and Clausing [19] provides a detailed analysis of how such trade cooperation could succeed. ...

How trade cooperation by the United States, the European Union, and China can fight climate change
  • Citing Article
  • January 2023

SSRN Electronic Journal

... Certain tools, particularly those affecting subsidies, are more likely to impact external competitiveness and fuel tensions in international trade relations. Subsidy escalation, heightened protectionism and potentially also full-blown trade wars would disproportionately harm less advanced economies, exacerbating global economic disparities (Clausing and Wolfram, 2023;Kleimann et al., 2023). ...

Carbon Border Adjustments, Climate Clubs, and Subsidy Races When Climate Policies Vary
  • Citing Article
  • August 2023

Journal of Economic Perspectives

... The clean and safe environment attract the foreign investors and also provide the confidence of the local portfolio investment (Shah et al., 2023). Clausing and Wolfram (2023) explain the consequence of the effective government policies related to the environmental protection. These authors concluded that the sustainable environment provides motivation to business concern in running the business activities through guiding by the government with the environmental changes. ...

Carbon Border Adjustments, Climate Clubs, and Subsidy Races When Climate Policies Vary
  • Citing Article
  • January 2023

SSRN Electronic Journal