IREES Colloquium: Carbon Border Adjustment Mechanism and Global Inequality: Employment and Welfare Impacts| Jin Yan, PhD student

Speakers: Jin Yan, PhD at IREES

Title: Carbon Border Adjustment Mechanism and Global Inequality: Employment and Welfare Impacts

Abstract: The European Union’s Carbon Border Adjustment Mechanism (CBAM) is designed to prevent carbon leakage, but its unequal socio-economic effects extend beyond Europe. By using the multi-regional input–output model and the Computable General Equilibrium (CGE) model, our research shows that developing countries face disproportionate employment and welfare losses, especially among low- and medium-skilled workers. At the same time, female labor in the global south is relatively more affected. Our findings underscore the importance of recycling CBAM revenues through international support to foster a more equitable global transition.