Corporate responses to the carbon border adjustment mechanism: Impacts, policy interactions, and strategic pathways
Journal
Journal of Cleaner Production
Journal Volume
560
Start Page
148373
ISSN
0959-6526
Date Issued
2026-05
Author(s)
Abstract
This study examines how the European Union's Carbon Border Adjustment Mechanism (CBAM) affects export-oriented manufacturing firms in Taiwan and shapes their strategic responses toward decarbonization and cleaner production. As CBAM is scheduled to impose carbon charges on selected imports from 2026, carbon-intensive industries—particularly steel, aluminum, cement, and fertilizers—are expected to face rising compliance costs and increasing pressure to adjust production and investment decisions. Using a mixed-methods approach, this study integrates focus group discussions with a structured questionnaire survey and applies the Analytic Hierarchy Process (AHP) to analyze firm-level decision-making under multiple criteria. A total of 32 valid responses were collected from Taiwanese firms with actual exports to the European Union. The results indicate that firms place the greatest emphasis on carbon reduction effectiveness, followed by policy support, while cost considerations rank third. This pattern suggests that firms are increasingly willing to pursue structural decarbonization and cleaner production strategies when supported by clear and credible policy incentives. In terms of strategic preferences, firms prioritize direct payment of CBAM charges as a short-term compliance strategy, while mitigation-oriented options—such as participation in domestic decarbonization projects combined with preferential carbon pricing—emerge as viable medium-term alternatives. Overall, these findings provide practical insights into how carbon border measures influence firm-level production strategies and highlight the importance of aligning domestic carbon pricing and policy support mechanisms to facilitate industrial transition toward cleaner production. Copyright
Subjects
Analytic hierarchy process
Carbon border adjustment mechanism (CBAM)
Carbon fee
Carbon pricing
Carbon tax
Publisher
Elsevier Ltd
Type
journal article