CarbonBorderAdjustments:DesignElements,Options,andPolicyDecisionsACarbonBorderAdjustments:DesignElements,Options,andPolicyDecisionsRaymondKopp,WilliamPizer,andKevinRennertReport23-14October2023ResourcesfortheFutureiAbouttheAuthorsRaymondKoppisaseniorfellowatResourcesfortheFuture(RFF).HeholdsPhDandMAdegreesineconomicsandanundergraduatedegreeinfinance.HehasbeenamemberoftheRFFresearchstaffsince1977andhasheldavarietyofmanagementpositionswithintheinstitution.Kopp’sinterestinenvironmentalpolicybeganinthelate1970s,whenhedevelopedtechniquestomeasuretheeffectofpollutioncontrolregulationsontheeconomicefficiencyofsteamelectricpowergeneration.HethenledthefirstexaminationofthecostofmajorU.S.environmentalregulationsinafull,generalequilibrium,dynamiccontextbyusinganapproachthatisnowwidelyacceptedasstate-of-the-artincost-benefitanalysis.DuringhiscareerKopphasspecializedintheanalysisofenvironmentalandnaturalresourceissueswithafocusonfederalregulatoryactivity.Heisanexpertintechniquesofassigningvaluetoenvironmentalandnaturalresourcesthatdonothavemarketprices,whichisfundamentaltocost-benefitanalysisandtheassessmentofdamagestonaturalresources.Kopp’scurrentresearchinterestsfocusonthedesignofdomesticandinternationalpolicestocombatclimatechange.WilliamPizerisVicePresidentforResearchandPolicyEngagementatRFF.From2008to2011,hewasDeputyAssistantSecretaryforEnvironmentandEnergyattheUSDepartmentoftheTreasury,whereheoversawTreasury’sroleintheUnitedStates’globalenvironmentandenergyagenda.HeisaresearchprofessorattheSanfordSchoolofPublicPolicyatDukeUniversity,wherehewaspreviouslytheSusanB.KingProfessorandSeniorAssociateDeanforFacultyandResearch.PriortohistimeattheUSTreasuryandDukeUniversity,hewasaresearcheratRFFformorethanadecade.Pizerhaswrittenmorethan60peer-reviewedpublications,books,andarticles,focusedontheeconomicsofclimatechange,andholdsaPhDandMAineconomicsfromHarvardUniversityandaBSinphysicsfromtheUniversityofNorthCarolinaatChapelHill.HeiscurrentlyamemberoftheNASEMCommitteeonAcceleratingDecarbonizationintheUnitedStatesandisaresearchassociateattheNationalBureauofEconomicResearch.KevinRennertisafellowatRFF,wherehefirstjoinedasavisitingfellowin2017.PriortohisarrivalatRFF,RennertservedasdeputyassociateadministratorfortheOfficeofPolicyattheUSEnvironmentalProtectionAgency.LeadinguptohisappointmentintheOfficeofPolicy,heworkedassenioradvisoronEnergyfortheSenateFinanceCommittee.Inthatrole,Rennertadvisedthecommittee’sChairman,SenatorRonWyden(D-OR),onawiderangeoftopicsrelatedtocleanenergy,efficiency,andpoliciestoreducegreenhousegasemissions.From2008to2014,heworkedonenergyandclimatelegislationasseniorprofessionalstafffortheSenateEnergyCommittee.Inthatcapacity,RennertledthedevelopmentoftheCleanEnergyStandardActof2012(S.2146),apresidentialprioritythatwouldusemarketmechanismstodoubletheamountofelectricitygeneratedintheUSfromloworzerocarbonsourcesby2035.In2010and2011,RennertalsotaughtgraduatecoursesinenergypolicyasadjunctfacultyintheDepartmentofStrategicManagementandPublicPolicyatGeorgeWashingtonUniversity.CarbonBorderAdjustments:DesignElements,Options,andPolicyDecisionsiiAboutRFFResourcesfortheFuture(RFF)isanindependent,nonprofitresearchinstitutioninWashington,DC.Itsmissionistoimproveenvironmental,energy,andnaturalresourcedecisionsthroughimpartialeconomicresearchandpolicyengagement.RFFiscommittedtobeingthem...