Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/73021
Authors: 
Tang, Ling
Bao, Qin
Zhang, ZhongXiang
Wang, Shouyang
Year of Publication: 
2013
Series/Report no.: 
Nota di Lavoro, Fondazione Eni Enrico Mattei 17.2013
Abstract: 
With large shares in global trade and carbon emissions, China's international trade is supposed to be significantly affected by the proposed carbon-based border tax adjustments (BTAs). This paper examines the impacts of BTAs imposed by the USA and EU on China's international trade, based on a multi-sector dynamic computable general equilibrium (CGE) model. The simulation results suggest that BTAs would have a negative impact on China's international trade in terms of large losses in both exports and imports. As an additional border tariff, BTAs will directly affect China's exports by cutting down exports price level, whereas Chinese exporting enterprises will accordingly modify their strategies, significantly shifting from exports to domestic markets and from regions with BTAs policies towards other regions without them. Moreover, BTAs will affect China's total imports and sectoral import through influencing the whole economy in an indirect but more intricate way. Furthermore, the simulation results for coping policies indicate that enhancing China's power in world price determination and improving energy technology efficiency will effectively help mitigate the damages caused by BTAs.
Subjects: 
border carbon tax adjustments
international trade
dynamic computable general equilibrium model
price determination power
technological change
JEL: 
D58
F18
Q43
Q48
Q52
Q54
Q56
Q58
Document Type: 
Working Paper

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