Feasibility analysis of China’s carbon taxation policy responding to the carbon tariff scheme of USA

Linrong Zhang; Dan Jiang; Muhammad Imran

doi:10.1007/s42823-019-00032-0

Aimed at determining whether China’s active carbon emission reduction policy can respond to the threat of carbon tariff of the USA, this study proposed two kinds of carbon tax schemes for the USA and China, same carbon tax policy and a differential carbon tax policy. Four scenarios are set: the USA only charging carbon tax on domestic products; the USA charging carbon tax on domestic products and carbon tariff on imported products from China; the USA and China taking the same carbon tax policy on domestic products; the USA and China taking the differential carbon tax policy on their domestic products. Global Trade Analysis Project Energy model is applied to discuss whether China’s active measure to reduce carbon emissions can be an effective solution to the threat of carbon tariff of the USA. The research results show that China’s active measure of the same carbon tax policy as the USA is not effective to cope with carbon tariff of the USA. However, it is an effective measure to take a differential carbon tax policy. The specific policy implications of the study are discussed in conclusion.

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* 2021년 이후 발행 논문의 참고문헌은 현재 구축 중입니다.

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