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GTAP Resource #6887

"Carbon Bias of Tariffs: Are Fossil Fuels the Culprits?"
by Bellora, Cecilia, Lionel Fontagné, Christophe Gouel and Youssef Salib

Using a quantitative trade model, this paper investigates the carbon bias of import tariffs. Are tariffs lower for goods with higher direct and indirect emissions intensity per dollar of output for CO2---as outlined by Shapiro (2021)---and all greenhouse gases (GHG)? A bias is confirmed over time with the most recent trade and tariff data, but considering all GHG decreases it. Removing the bias by applying the same tariff for all goods in each bilateral relationship results in a reduction in GHG emissions of 0.6 to 1.4% depending on the year and model specifications. This bias can be broken down by sectoral origin. Low fossil fuel tariffs account for most of the effect, while tariffs applied on agriculture, brown industries and other sectors account for less than a quarter of the effect. These findings suggest that removing the carbon bias of import tariffs may not be a priority for environmental policy-making.

Resource Details (Export Citation) GTAP Keywords
Category: 2023 Conference Paper
Status: Not published
By/In: Presented during the 26th Annual Conference on Global Economic Analysis (Bordeaux, France)
Date: 2023
Version: 0.1
Created: Salib, Y. (4/13/2023)
Updated: Salib, Y. (4/13/2023)
Visits: 390
- Climate change policy
- Trade and the environment
- Other data bases and data issues
- New quantitative trade models

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Special Instructions
This draft is still very preliminary.

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