Resource Center

Advanced Search
Technical Papers
Working Papers
Research Memoranda
GTAP-L Mailing List
CGE Books/Articles
Important References
Submit New Resource

GTAP Resources: Resource Display

GTAP Resource #7164

"Trade Policy as Climate Policy: Payoffs and Tradeoffs "
by Devarajan, Shanta, Delfin S Go, Sherman Robinson and Karen Thierfelder

Countries that unilaterally curb their own carbon emissions, a global public good, have an interest in other countries’ doing the same. Using a global simulation model, we explore how carbon-taxing countries can use trade policy to induce other countries to lower their carbon emissions. The European Union (EU)’s carbon border adjustment mechanism, in which non-carbon-taxing countries face import tariffs in carbon-intensive sectors, while it helps EU producers, will not reduce global emissions because exporting countries can diversify their trade partners. A climate club, in which members adopt a carbon tax and impose tariffs against all products from non-members, can reduce global emissions by inducing non-taxing countries to join the club. However, club members strongly linked to non-club regions through trade suffer losses, adding to the cost of club membership. Furthermore, the tariffs needed to induce all regions to join the club are high and punitive.

Resource Details (Export Citation) GTAP Keywords
Category: 2024 Conference Paper
Status: Not published
By/In: Presented during the 27th Annual Conference on Global Economic Analysis (Fort Collins, Colorado, USA)
Date: 2024
Created: Thierfelder, K. (4/8/2024)
Updated: Thierfelder, K. (5/30/2024)
Visits: 75
- Climate change policy
- Environmental policies
- Trade and the environment
- Supply chains
- Asia (Southeast)
- European Union
- North America

If you have trouble accessing any of the attachments below due to disability, please contact the authors listed above.

Public Access
  File format GTAP Resource 7164 - presentation  (419.6 KB)   Replicated: 0 time(s)
  File format Paper  (2.6 MB)   Replicated: 0 time(s)

Restricted Access
No documents have been attached.

Special Instructions
No instructions have been specified.

Comments (0 posted)
You must log in before entering comments.

No comments have been posted.