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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


Abstract
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
Version:
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


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


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