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PRWP

Reproducibility package for Carbon Border Adjustment Mechanism (CBAM) Exposure Indices – Methodological Note

2025
Get Reproducibility Package
Reference ID
RR_WLD_2025_343
Author(s)
Maryla Maliszewska, Carolyn Fischer, Euijin Jung, Maksym Chepeliev
Collections
World Bank Policy Research Working Papers
Metadata
JSON
Created on
May 12, 2025
Last modified
May 12, 2025
  • Overview
  • Reproducibility Package
  • Description
  • Scope and coverage
  • Disclaimer
  • Access and rights
  • Contacts
  • Information on metadata

    • Overview

    Abstract

    The EU Carbon Border Adjustment Mechanism (CBAM) aims to level the playing field by applying the same carbon price faced by domestic producers under the Emission Trading System to the emissions embodied in certain imported goods. Differences in emissions intensity between EU and developing country producers will then influence the competitiveness of firms in developing countries exporting aluminum, cement, electricity, fertilizer, iron and steel, and hydrogen to the EU. Indicators are developed to assess the potential exposure of developing countries to the CBAM, using measures of excess carbon payments relative to EU producers expressed as shares of total exports, gross sectoral output, and GDP. Although macroeconomic impacts are expected to be small, some countries (like Mozambique in aluminum and Egypt in fertilizer) could see economically meaningful reductions in competitiveness in the EU market. A few countries with relatively low emission intensity of production may stand to gain market share.

    Reproducibility Package

    Scripts
    Get Reproducibility Package
    Title
    Reproducibility package for Carbon Border Adjustment Mechanism (Cbam) Exposure Indices – Methodological Note
    Date
    2025-05
    Dependencies
    The reproducibility package does not use external dependencies.
    Instructions
    See README in reproducibility package.
    Notes
    Computational reproducibility verified by Development Impact (DIME) Analytics team, World Bank.
    Source code repository
    Repository name URI
    Reproducible Research Repository (World Bank) https://reproducibility.worldbank.org
    Software
    Name
    Stata
    Version
    18 MP

    Reproducibility

    Technology environment

    Paper exhibits were reproduced in a computer with the following specifications:
    • OS: Windows 10 Enterprise
    • Processor: Intel(R) Xeon(R) Gold 6226R CPU @ 2.90GHz 2.90 GHz (2 processors)
    • Memory available: 32 GB
    • Software version: Stata version 18 MP
    Technology requirements

    ~ 5 minutes.
    Reproduction instructions
    1. Secure Access to Data: Download the datasets not included in the package. See subsection Datasets and the README for more details.
    2. Download and Place Data: Once the data is downloaded, users should place it in the appropriate folder.
    3. Run the Package: After placing the data in the folder:
      • Open the do-file "cbam_rp"
      • Update the globals in line 8 to your folder's location
      • Run the do-file

    Since all the data is not included, the package includes the results produced by replicators in the Results folder. These files can be used to review the results presented in the paper.

    Data

    Datasets
    Name
    UN COMTRADE Global Trade data
    Note
    Source: Data was accessed through a query on the UN COMTRADE database executed through World Integrated Trade Solution (https://wits.worldbank.org/). The README contains more information on how to reproduce the exact query. Located at: Data/WITS_HS2017_Bilateral_2022.xlsx
    Access policy
    Users must download the data directly from the Data URL provided below.
    License
    https://comtrade.un.org/licenseagreement.html
    Data URL
    https://wits.worldbank.org/
    Name
    Global Trade Analysis Project Database
    Note
    Source 1: Chepeliev, M., & Corong, E. (2022). Revisiting the environmental bias of trade policies based on an environmentally extended GTAP MRIO Data Base (Presented during the 25th Annual Conference on Global Economic Analysis (Virtual Conference)). Purdue University, West Lafayette, IN: Global Trade Analysis Project (GTAP). Retrieved from https://www.gtap.agecon.purdue.edu/resources/res_display.asp?RecordID=6548. Source 2: Chepeliev, M., Aguiar, A., Farole, T., Liverani, A., & van der Mensbrugghe, D. (2022). EU Green Deal and Circular Economy Transition: Impacts and Interactions (Presented during the 25th Annual Conference on Global Economic Analysis (Virtual Conference)). Purdue University, West Lafayette, IN: Global Trade Analysis Project (GTAP). Retrieved from https://www.gtap.agecon.purdue.edu/resources/res_display.asp?RecordID=6607 Files names: EMAG.CSV, EXAG2.CSV and OTAG.CSV:
    Access policy
    The intermediate data is included in the package. To access the raw data, WB staff can contact Senior Economist Maryla Maliszewska at ETIRI, mmaliszewska@worldbank.org for access. Non-WB staff should visit https://www.gtap.agecon.purdue.edu/databases/pricing.asp and contact GTAP center at contactgtap@purdue.edu.
    Name
    Gross Domestic Product (current US$) 2022 data
    Note
    Source: World Bank national accounts data, and OECD National Accounts data files. International Monetary Fund, World Economic Outlook Database. Notes: 2022 GDP (current US$) data is obtained from World Bank WDI in 2024. Gross domestic product (current prices U.S. dollars) of Taiwan, Venezuela, Eritrea, and South Sudan data is from IMF World Economic Outlook in 2024. Located at: Data/gdp.dta
    Access policy
    Included with the package.
    License
    https://www.worldbank.org/en/about/legal/terms-of-use-for-datasets
    Name
    World Bank country classification in 2024
    Note
    Source: The World Bank. Located at: Data/ISO_Region_Income.dta
    Access policy
    Included with the package.
    License
    https://www.worldbank.org/en/about/legal/terms-of-use-for-datasets
    Data URL
    https://datahelpdesk.worldbank.org/knowledgebase/articles/906519-world-bank-country-and-lending-groups
    Data statement

    Some data is restricted and has not been included in the reproducibility package. For more details, please refer to the README file.

    Description

    Output
    Type
    World Bank Policy Research Working Papers
    Title
    Carbon Border Adjustment Mechanism (Cbam) Exposure Indices – Methodological Note
    Description
    Policy Research Working Papers (PRWP)
    Authors
    Author Affiliation Email
    Maryla Maliszewska World Bank mmaliszewska@worldbank.org
    Carolyn Fischer World Bank cfischer@worldbank.org
    Euijin Jung World Bank ejung1@worldbank.org
    Maksym Chepeliev Purdue University mchepeli@purdue.edu
    Date of production

    2025-05

    Scope and coverage

    Geographic locations
    Location Code
    World WLD
    Keywords
    Environment International Trade Climate Carbon Emissions
    Topics
    ID Topic Parent topic ID Vocabulary Vocabulary URI
    F18 Trade and Environment F1 Journal of Economic Literature (JEL)
    F14 Empirical Studies of Trade F1 Journal of Economic Literature (JEL)
    Q54 Climate • Natural Disasters and Their Management • Global Warming Q5 Journal of Economic Literature (JEL)

    Disclaimer

    Disclaimer

    The materials in the reproducibility packages are distributed as they were prepared by the staff of the International Bank for Reconstruction and Development/The World Bank. The findings, interpretations, and conclusions expressed in this event do not necessarily reflect the views of the World Bank, the Executive Directors of the World Bank, or the governments they represent. The World Bank does not guarantee the accuracy of the materials included in the reproducibility package.

    Access and rights

    License
    Name URI
    Modified BSD3 https://opensource.org/license/bsd-3-clause/

    Contacts

    Contacts
    Name Affiliation Email
    Maryla Maliszewska World Bank mmaliszewska@worldbank.org
    Reproducibility WBG World Bank reproducibility@worldbank.org

    Information on metadata

    Producers
    Name Abbreviation Affiliation Role
    Reproducibility WBG DIME World Bank - Development Impact Department Verification and preparation of metadata
    Date of Production

    2025-05-08
    Document version

    1
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