The CBO-EPPA model working paper analyzes how carbon border adjustment mechanisms—specifically import tariffs on carbon-intensive goods and export rebates for domestic manufacturers—would affect U.S. economic output, trade balances, and emissions when paired with a carbon tax. The analysis covers multiple sectors and compares scenarios with and without these trade-related carbon policies.

This is an analytical research publication rather than a regulatory instrument; it imposes no compliance requirements, deadlines, or penalties on any regulated entity. Government agencies, policymakers, and analysts tracking carbon pricing legislation may reference this model for economic projections. No action is required from private sector entities.