EconPapers    
Economics at your fingertips  
 

CLIMATE CLUBS WITH TAX REVENUE RECYCLING, TARIFFS, AND TRANSFERS

Daigee Shaw () and Yu-Hsuan Fu
Additional contact information
Yu-Hsuan Fu: Institute of Economics, Academia Sinica, Taiwan

Climate Change Economics (CCE), 2020, vol. 11, issue 04, 1-14

Abstract: The E3ME-FTT model is applied to assess the impacts of alternative climate club structures. We consider two kinds of climate club memberships: the World Climate Club (WCC), where every country in the world joins the club, and the Core Climate Club (CCC), with seven likely club members: EU+5, Japan, South Korea, Canada, Brazil, Mexico, and Australia. First, we find that both the WCC and domestic revenue-neutral recycling matter a lot. The global CO2 emissions in 2050 could be reduced by 50% from BAU under the WCC. With domestic revenue-neutral recycling, there will be large positive impacts on GDP under both the WCC and the CCC. Secondly, the negative effects of trade sanctions on cumulative global GDP and global CO2 emissions make it unwelcome to be used as part of the club design. Lastly, the introduction of international transfers will result in a win–win solution that will not only increase the cumulative global GDP and reduce global CO2 emissions but also enhance the equality among club members and induce more likely participation in the climate club.

Keywords: Climate club; carbon tax; revenue recycling; tariff; international transfer (search for similar items in EconPapers)
Date: 2020
References: Add references at CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
http://www.worldscientific.com/doi/abs/10.1142/S2010007820400084
Access to full text is restricted to subscribers

Related works:
Chapter: CLIMATE CLUBS WITH TAX REVENUE RECYCLING, TARIFFS, AND TRANSFERS (2021) Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:wsi:ccexxx:v:11:y:2020:i:04:n:s2010007820400084

Ordering information: This journal article can be ordered from

DOI: 10.1142/S2010007820400084

Access Statistics for this article

Climate Change Economics (CCE) is currently edited by Robert Mendelsohn

More articles in Climate Change Economics (CCE) from World Scientific Publishing Co. Pte. Ltd.
Bibliographic data for series maintained by Tai Tone Lim ().

 
Page updated 2022-05-15
Handle: RePEc:wsi:ccexxx:v:11:y:2020:i:04:n:s2010007820400084