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GTAP Resource #3655

"Credibility of trade sanctions in greenhouse gas mitigation agreements in agriculture and forestry"
by Irfanoglu, Zeynep Burcu

This study explores under what conditions a trade sanction can be an effective enforcement mechanism used by the US against China in global greenhouse (GHG) mitigation dilemma. The problem has the structure of prisoner’s dilemma and hence both the US and China have incentive to free-ride in GHG emissions abatement. It is found that if the US joined the rest of the world (ROW) in emissions abatement, the US could also convince China to comply with abatement using trade sanctions. As long as the carbon prices do not exceed certain threshold values, the trade sanction threat by the US on imports from China is credible.

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: Irfanoglu, Z. (4/17/2011)
Updated: Batta, G. (4/18/2011)
Visits: 2,300
- Domestic policy analysis
- Trade and the environment
- European Union
- Commonwealth of Independent States

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