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Carbon Border Adjustments (CBAs) are becoming a critical instrument for addressing carbon leakage in unilateral climate policies. Yet implementing product-specific carbon pricing in computable general equilibrium models with input-output structures remains methodologically challenging. We develop a novel framework that integrates endogenous footprint accounting with price schedules dependent on embodied carbon, enabling analysis of CBAM design alternatives in GE models with flexible input-output structures. We apply the method to systematically compare three policy design margins for the EU-CBAM: (1) sector coverage (narrow CBAM sectors vs. all ETS sectors), (2) source broadness (direct emissions only vs. direct and indirect emissions), and (3) product-specificity (sector-aggregate vs. product-level carbon pricing),. We characterize these design alternatives and demonstrate that product-specificity emerges as the dominant design feature for CBAM effectiveness. Product-level CBAMs substantially reduce carbon leakage and improve global cost-efficiency compared to sector-aggregate alternatives, while broader sector coverage and indirect emissions accounting yield modest additional gains. While CBAMs generating significant foreign emissions reductions at modest costs, the more effective designs also substantial raise administrative costs. The CEPE Lunch Seminar in Sustainability Economics and Finance is open to the scientific community interested in the topic. Sandwiches and water will be provided for the attendees.

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