Akademik Veri Yönetim Sistemi
EBES, Rome, İtalya, 9 - 11 Nisan 2025, (Yayınlanmadı)
Countries are taking several policy and regulatory steps to mitigate the adverse impacts of climate change around the globe. One of these measures taken by countries aligned with the European Union Emissions Trading System is the Carbon Border Adjustment Mechanism (CBAM). CBAM aims to prevent carbon leakage and the loss of international competitiveness due to the EU's stringent climate policies. The objective of this article is to examine the structure of the international electricity trade network encompassed by CBAM. This study employs network analysis to assess how geographical proximity, trade partnerships, and centrality influence the structure of trade relations under CBAM. By analysing the R programming environment, the article aims to provide insights into how unilateral carbon policies reshape global trade dynamics.
Literature primarily focuses on CBAM's effectiveness in reducing carbon leakage, tackling competitive conditions, limiting global welfare costs, and fostering climate cooperation, with emerging research exploring its impact across sectoral impacts. Sectoral analyses reveal that electricity differs from other traded goods in two keyways. First, this differentiation stems from the EU's importance on energy policies. Under the framework of the Green Deal, the EU has established stable and ambitious energy policy, reflecting the fact that energy accounts for approximately 75% of greenhouse gas emissions. Additionally, the EU has launched the RepowerEU plan to eliminate dependency on Russian fossil fuels while taking urgent measures to ensure energy security and stabilize markets. Furthermore, it may be necessary to establish new trade partnerships to ensure that electricity trade which constitutes approximately 4.5% of the EU's total imports. The second area of differentiation pertains to the physical nature of electricity. Electricity is a homogeneous good, and its trade flow is physically constrained by transmission capacity. Therefore, the risk of firm relocation is contingent on both carbon pricing and the existing trade capacity. As a result, trade policies may have state-dependent effects.
The results indicate that CBAM could significantly alter international electricity trade networks, with high-carbon countries needing to restructure trade relations due to rising costs. In contrast, countries with clean energy sources are likely to gain a more central position in the trade network, providing them with a competitive advantage. CBAM may effectively reduce carbon leakage and promote global decarbonization, but supportive policies for developing countries will be essential. Additionally, CBAM has the potential to encourage international cooperation for global carbon pricing.