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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, Ce Wang (), Rong Han, Yun-Fei Du, Yun-Fei Yao, Jun-Jie Chang, Jinxiao Tan, Hua Liao () and Yi-Ming Wei ()
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Kun Zhang: Center for Energy and Environmental Policy Research, Beijing Institute of Technology, Beijing 100081, P. R. China†School of Management and Economics, Beijing Institute of Technology, Beijing 100081, P. R. China‡Beijing Key Lab of Energy Economics and Environmental Management, Beijing 100081, P. R. China
Li-Jing Liu: Center for Energy and Environmental Policy Research, Beijing Institute of Technology, Beijing 100081, P. R. China†School of Management and Economics, Beijing Institute of Technology, Beijing 100081, P. R. China‡Beijing Key Lab of Energy Economics and Environmental Management, Beijing 100081, P. R. China
Mei-Mei Xue: Center for Energy and Environmental Policy Research, Beijing Institute of Technology, Beijing 100081, P. R. China†School of Management and Economics, Beijing Institute of Technology, Beijing 100081, P. R. China‡Beijing Key Lab of Energy Economics and Environmental Management, Beijing 100081, P. R. China
Bi-Ying Yu: Center for Energy and Environmental Policy Research, Beijing Institute of Technology, Beijing 100081, P. R. China†School of Management and Economics, Beijing Institute of Technology, Beijing 100081, P. R. China‡Beijing Key Lab of Energy Economics and Environmental Management, Beijing 100081, P. R. China
Rong Han: Center for Energy and Environmental Policy Research, Beijing Institute of Technology, Beijing 100081, P. R. China†School of Management and Economics, Beijing Institute of Technology, Beijing 100081, P. R. China‡Beijing Key Lab of Energy Economics and Environmental Management, Beijing 100081, P. R. China
Yun-Fei Du: Center for Energy and Environmental Policy Research, Beijing Institute of Technology, Beijing 100081, P. R. China†School of Management and Economics, Beijing Institute of Technology, Beijing 100081, P. R. China‡Beijing Key Lab of Energy Economics and Environmental Management, Beijing 100081, P. R. China
Yun-Fei Yao: Center for Energy and Environmental Policy Research, Beijing Institute of Technology, Beijing 100081, P. R. China
Jun-Jie Chang: Center for Energy and Environmental Policy Research, Beijing Institute of Technology, Beijing 100081, P. R. China†School of Management and Economics, Beijing Institute of Technology, Beijing 100081, P. R. China‡Beijing Key Lab of Energy Economics and Environmental Management, Beijing 100081, P. R. China
Jinxiao Tan: Center for Energy and Environmental Policy Research, Beijing Institute of Technology, Beijing 100081, P. R. China†School of Management and Economics, Beijing Institute of Technology, Beijing 100081, P. R. China‡Beijing Key Lab of Energy Economics and Environmental Management, Beijing 100081, P. R. China

Climate Change Economics (CCE), 2020, vol. 11, issue 03, 1-26

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; tariff; computable general equilibrium (CGE) model; climate policy (search for similar items in EconPapers)
Date: 2020
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DOI: 10.1142/S2010007820410079

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