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GTAP Resource #3539

"The carbon content of trade: Under border tariff adjustments and a global carbon regime"
by Weitzel, Matthias and Sonja Peterson

In this paper we use a multi-regional, multi-sectoral CGE model of the world economy to assess the leakage effects and the changes of the carbon content of trade under different climate policy scenarios, including unilateral policies plus/minus border tariff adjustment (BTA) as well as stylized international policy scenarios. The paper combines input output techniques to assess the carbon content of trade over the whole production with CGE analysis to explore the impact of the different climate policies scenarios. The main results include that BTA does reduce the negative competitiveness effects of unilateral climate policy, but has only a modest effect on carbon leakage and hardly affects global carbon emissions. At the same time it is not a sufficient thread for many countries to rather join an international climate regime based on the contraction and convergence allocation of permits.

Resource Details (Export Citation) GTAP Keywords
Category: 2011 Conference Paper
Status: Published
By/In: Presented at the 14th Annual Conference on Global Economic Analysis, Venice, Italy
Date: 2011
Created: Weitzel, M. (4/13/2011)
Updated: Weitzel, M. (6/1/2011)
Visits: 2,114
- Climate change policy

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