AI RESEARCH
Will the Carbon Border Adjustment Mechanism Impact European Electricity Prices? A GNN-Based Network Analysis
arXiv CS.LG
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ArXi:2605.03304v1 Announce Type: new The European Union's Carbon Border Adjustment Mechanism (CBAM) creates a complex challenge for the interconnected European electricity market. Traditional static analyses often miss the cross-border spillover effects that are vital for understanding this policy. This paper addresses this gap by developing a spatio-temporal Graph Neural Network (GNN) framework. It quantifies how CBAM affects electricity prices and carbon intensity (CI) at the same time. We modeled a subgraph of eight European countries.