Could VAT Techniques Be Used To Implement Border Carbon Adjustments? Illustration of VATs and VATCATs - Expanded Version

This is an expanded version of an article published in the August 2012 issue of the Bulletin. In this article, the author examines whether techniques patterned after VAT techniques could be used to implement a “carbon-added tax” and the associated border carbon adjustments required to convert an origin-based tax on emissions to a destination-based tax. The author also considers the (in)feasibility of a retail carbon tax.