Modeling Carbon Border Tax for Material-Based GHG Emission and Costs in Global Supply Chain Network

Abstract One of the problems in an environmental policy is carbon leakage, which increasing GreenHouse Gas (GHG) emissions as adverse effect due to production shift from countries with strict climate change policies those careless ones. In this situation, Carbon Boarder Adjustment (CBA) considered a countermeasure for mitigating GHG emission and leakage globally, European Union (EU) agreeing introduce CBA 2026. expected have huge impact upon global supply chain network. The reasons it are that total cost on network been influenced by different procurement cost, customs duty level each country price level, governmental policy, energy mix. However, not revealed how much has Thus, study models intersection environment economy. First, modeled formulated minimizing using integer programming. Second, problem example prepared bill materials life cycle assessment. After that, under market U.S., numerical experiment conducted validate proposed model. Finally, discussed.