• Environmental and Resource Economics Review
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• v.32 no.1
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• pp.47-75
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• 2023

Compared to the EU, which legislates the Carbon Border Adjustment System (CBAM), the United States' carbon border adjustment policy movement is still relatively slow. Recently, however, a related bill has been proposed in the United States, and research institutes have been presenting research results on how to introduce an upstream carbon tax rather than an emission trading system and carry out carbon border adjustment based on it. Therefore, in this study, we looked at the economic and environmental effects of introducing this type of upstream carbon tax and carbon border adjustment in Korea. If an upstream carbon tax of KRW 30,000 per ton of CO₂ is applied to the net supply of domestic fossil energy, the expected carbon tax revenue is approximately KRW 22.9961 trillion, equivalent to about 5.7% of the total revenue of the Korean government of KRW 402 trillion in 2019. In addition, the carbon dioxide content of the steel sector, calculated based on the energy supply and demand status of the steel sector, which emits the most greenhouse gas emissions in Korea and has a considerable amount of overseas exports, was 106.22 million tons of CO₂. On the other hand, assuming that the upstream carbon tax of 30,000 won per ton of CO₂ embodied is directly passed on to the production cost of the steel sector, the carbon tax burden in the steel sector is estimated to reach approximately KRW 3.1865 trillion. Even after deducting KRW 1.1599 trillion in export refunds estimated by using the share of exports of steel products, the net carbon tax burden on steel products for domestic demand amounts to KRW 2.0266 trillion, which is analyzed to act as a factor in increasing the price of steel products.

• THE INTERNATIONAL COMMERCE & LAW REVIEW
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• v.74
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• pp.125-150
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• 2017

Environment protection is one of the important political goals along with trade liberalization. Some of the institutions associated with it, however, either hinder trade or exert distorted influence and can arouse trade conflicts eventually. Therefore, harmony between environment protection and trade policy is becoming a crucial issue nowadays. Among the policies for environment, those related to climatic change are regarded as major tasks to deal with in the world commonly. Saying that it is for environment protection, advanced countries impose fines for environment protection on developing countries through border tax adjustments about the items imported from them. However, there is no such agreement about it internationally, so disputes often arise regarding what extent is appropriate as countries cope with it differently in their own way. Disputes about measures for climatic change are highly influential economically, and due to the severe conflicts of interests between states, they often tend to become politicized. Accordingly, we can say that such disputes affect international trade based on the WTO system seriously. When it comes to negotiation for climatic change, we should establish international systems urgently which can work fairly and effectively for all the countries joining in it. Therefore, it is important to examine the treatment of trade restriction measures intended to solve climatic change in international negotiations and establish definite conditions about which measures are allowed and which are not. In conclusion, we should devise rules for environment protection internationally which all the countries in the world can accept and agree on and also make the definite criteria of interpretation as well. Also, through those trade regulations, we should be able to accomplish environment protection globally and at the same time produce synergy, that is, economic growth through trading.

• Korea Trade Review
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• v.48 no.4
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• pp.209-232
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• 2023

This study aims to estimate the export performance factors of Korean Steel Products to the EU and the expected changes in exports according to the CBAM(Carbon Border Adjustment Mechanism). the factors influencing the export performance of Korean Steel Products to the EU were analyzed using a Gravity Model, and the expected export amount in the case of a Carbon Tax was calculated assuming that the CBAM would be implemented in 2026, As a result, it was empirically analyzed that economic growth, population growth, exchange rate and manufacturing production index of each EU country have a positive effect on exports in Korea, and it was analyzed that the effects of the single market and system due to the EU's economic community were also helpful in increasing exports but the Carbon Tax is imposed in 2026, reducing Korea's steel exports by about -3.6% to -5.7%

• Korea Trade Review
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• v.47 no.4
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• pp.15-33
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• 2022

This study is to investigate multilateral environmental agreements,mainly UNFCCC on the primary export industry of Korea and to make a policy recommendation. Mostly literature reviews are focused on the traditional multilateral environmental agreements and the for the most part analysis are conducted prior to the Paris agreement. The result of survey indicates that many companies have not yet felt burden on their business due to UNFCCC(decarbonization) and have monitored the related policies. But the companies ask the government for strong incentives. The paper implies that enforcing strong government incentives, upgrading usage of the nuclear power, improving the related government legislation, setting up the special task force team with government and private sectors are needed.