IMPACTS of MECHANISMS to PROMOTE PARTICIPATION in CLIMATE MITIGATION: BORDER CARBON ADJUSTMENTS VERSUS UNIFORM TARIFF MEASURES

Kun Zhang; Qiao Mei Liang; Li Jing Liu; Mei Mei Xue; Bi Ying Yu; C. E. Wang; Rong Han; Yun Fei Du; Yun Fei Yao; Jun Jie Chang; Jinxiao Tan; Hua Liao; Yi Ming Wei

doi:10.1142/S2010007820410079

IMPACTS of MECHANISMS to PROMOTE PARTICIPATION in CLIMATE MITIGATION: BORDER CARBON ADJUSTMENTS VERSUS UNIFORM TARIFF MEASURES

Kun Zhang, Qiao Mei Liang, Li Jing Liu, Mei Mei Xue, Bi Ying Yu, C. E. Wang, Rong Han, Yun Fei Du, Yun Fei Yao, Jun Jie Chang, Jinxiao Tan, Hua Liao, Yi Ming Wei

Beijing Institute of Technology

Research output: Contribution to journal › Article › peer-review

13 Citations (Scopus)

Abstract

Because free-riding behavior is an inherent characteristic of climate change, how to protect the economic benefits of the emission reduction regions and prompt the noncooperative region to join the emission reduction coalition is particularly important. In this study, we use a global multi-region multi-sector CGE model to compare the impacts of border carbon adjustment (BCA) and two unified tariff mechanisms based on different implementation principles on USA. The results show that the BCA is more effective in reducing carbon leakage in USA than the uniform tariff mechanisms. However, for GDP and welfare losses, the scenario Tariff-carbon-reduction results in greater GDP and welfare losses in USA, which is more conducive to prompting USA to implement carbon reduction policies than the BCA measures. Finally, the sensitivity analysis of carbon price levels and key substitution elasticity further confirmed the results.

Original language	English
Article number	2041007
Journal	Climate Change Economics
Volume	11
Issue number	3
DOIs	https://doi.org/10.1142/S2010007820410079
Publication status	Published - 1 Aug 2020

Keywords

Border carbon adjustment
climate policy
computable general equilibrium (CGE) model
tariff

UN SDGs

This output contributes to the following UN Sustainable Development Goals (SDGs)

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Zhang, K., Liang, Q. M., Liu, L. J., Xue, M. M., Yu, B. Y., Wang, C. E., Han, R., Du, Y. F., Yao, Y. F., Chang, J. J., Tan, J., Liao, H., & Wei, Y. M. (2020). IMPACTS of MECHANISMS to PROMOTE PARTICIPATION in CLIMATE MITIGATION: BORDER CARBON ADJUSTMENTS VERSUS UNIFORM TARIFF MEASURES. Climate Change Economics, 11(3), Article 2041007. https://doi.org/10.1142/S2010007820410079

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title = "IMPACTS of MECHANISMS to PROMOTE PARTICIPATION in CLIMATE MITIGATION: BORDER CARBON ADJUSTMENTS VERSUS UNIFORM TARIFF MEASURES",

abstract = "Because free-riding behavior is an inherent characteristic of climate change, how to protect the economic benefits of the emission reduction regions and prompt the noncooperative region to join the emission reduction coalition is particularly important. In this study, we use a global multi-region multi-sector CGE model to compare the impacts of border carbon adjustment (BCA) and two unified tariff mechanisms based on different implementation principles on USA. The results show that the BCA is more effective in reducing carbon leakage in USA than the uniform tariff mechanisms. However, for GDP and welfare losses, the scenario Tariff-carbon-reduction results in greater GDP and welfare losses in USA, which is more conducive to prompting USA to implement carbon reduction policies than the BCA measures. Finally, the sensitivity analysis of carbon price levels and key substitution elasticity further confirmed the results.",

keywords = "Border carbon adjustment, climate policy, computable general equilibrium (CGE) model, tariff",

author = "Kun Zhang and Liang, {Qiao Mei} and Liu, {Li Jing} and Xue, {Mei Mei} and Yu, {Bi Ying} and Wang, {C. E.} and Rong Han and Du, {Yun Fei} and Yao, {Yun Fei} and Chang, {Jun Jie} and Jinxiao Tan and Hua Liao and Wei, {Yi Ming}",

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year = "2020",

month = aug,

day = "1",

doi = "10.1142/S2010007820410079",

language = "English",

volume = "11",

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T2 - BORDER CARBON ADJUSTMENTS VERSUS UNIFORM TARIFF MEASURES

AU - Zhang, Kun

AU - Liang, Qiao Mei

AU - Liu, Li Jing

AU - Xue, Mei Mei

AU - Yu, Bi Ying

AU - Wang, C. E.

AU - Han, Rong

AU - Du, Yun Fei

AU - Yao, Yun Fei

AU - Chang, Jun Jie

AU - Tan, Jinxiao

AU - Liao, Hua

AU - Wei, Yi Ming

PY - 2020/8/1

Y1 - 2020/8/1

N2 - Because free-riding behavior is an inherent characteristic of climate change, how to protect the economic benefits of the emission reduction regions and prompt the noncooperative region to join the emission reduction coalition is particularly important. In this study, we use a global multi-region multi-sector CGE model to compare the impacts of border carbon adjustment (BCA) and two unified tariff mechanisms based on different implementation principles on USA. The results show that the BCA is more effective in reducing carbon leakage in USA than the uniform tariff mechanisms. However, for GDP and welfare losses, the scenario Tariff-carbon-reduction results in greater GDP and welfare losses in USA, which is more conducive to prompting USA to implement carbon reduction policies than the BCA measures. Finally, the sensitivity analysis of carbon price levels and key substitution elasticity further confirmed the results.

AB - Because free-riding behavior is an inherent characteristic of climate change, how to protect the economic benefits of the emission reduction regions and prompt the noncooperative region to join the emission reduction coalition is particularly important. In this study, we use a global multi-region multi-sector CGE model to compare the impacts of border carbon adjustment (BCA) and two unified tariff mechanisms based on different implementation principles on USA. The results show that the BCA is more effective in reducing carbon leakage in USA than the uniform tariff mechanisms. However, for GDP and welfare losses, the scenario Tariff-carbon-reduction results in greater GDP and welfare losses in USA, which is more conducive to prompting USA to implement carbon reduction policies than the BCA measures. Finally, the sensitivity analysis of carbon price levels and key substitution elasticity further confirmed the results.

KW - Border carbon adjustment

KW - climate policy

KW - computable general equilibrium (CGE) model

KW - tariff

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IMPACTS of MECHANISMS to PROMOTE PARTICIPATION in CLIMATE MITIGATION: BORDER CARBON ADJUSTMENTS VERSUS UNIFORM TARIFF MEASURES

Abstract

Keywords

UN SDGs

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