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Carril‐Caccia, Federico, and Elena Pavlova. "Mergers and acquisitions & trade: A global value chain analysis." The World Economy 43.3: 586-614, 2020.

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Article

Effects of the Carbon Border Adjustment Mechanism on Enterprises’ Export Capabilities

1Ph.D, Taichung Customs Administration, Ministry of Finance, Taichung 43501, Taiwan


Journal of Business and Management Sciences. 2023, Vol. 11 No. 4, 245-253
DOI: 10.12691/jbms-11-4-4
Copyright © 2023 Science and Education Publishing

Cite this paper:
Yen-Hui Kuo. Effects of the Carbon Border Adjustment Mechanism on Enterprises’ Export Capabilities. Journal of Business and Management Sciences. 2023; 11(4):245-253. doi: 10.12691/jbms-11-4-4.

Correspondence to: Yen-Hui  Kuo, Ph.D, Taichung Customs Administration, Ministry of Finance, Taichung 43501, Taiwan. Email: gaulove888@gmail.com

Abstract

In 2021, the EU proposed the Carbon Border Adjustment Mechanism (CBAM) to handle CO2 emissions in international commerce and mitigate climate change’s effects on the global economy. The CBAM modifies tariffs on imported commodities to prevent low-carbon nations from profiting from the efforts of other countries to reduce emissions, thereby leveling the playing field between nations with and without carbon pricing. This study investigates the effects of the CBAM on the global economy and export capacity. Data from the World Trade Organization, the Organisation for Economic Co-operation and Development, Taiwan Economic Journal, and the World Bank from 1990 to 2021 were analyzed using artificial intelligence techniques to identify factors related to society, the environment, infrastructure, government efficiency, macroeconomics, trade finance, and innovation technology that significantly affect CO2 emissions per capita. A positive correlation was observed between CO2 emissions and gross domestic product; economic development tends to increase CO2 emissions. The prevalence of diabetes is identified as a significant factor in the European Union and elsewhere. In addition, high CO2 emissions, exacerbating climate change, can affect the production and availability of food as well as indirectly cause health concerns such as diabetes. However, sustainable development can cause CO2 emissions to stabilize or decrease in certain cases. In addition, the analysis revealed that Japan, the United States, and Australia have screened CO2 emission factors and pay attention to the environment and energy-saving technology. Agricultural land is also a key target for reducing emissions, and carbon tariffs can be used to incentivize the reduction of greenhouse gas emissions in the agricultural sector. The results of this study have practical value and can guide decision-makers, including governments, businesses, scholars, and stakeholders, in balancing functional and performance indicators during decision-making.

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