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Impacts Of Mechanisms To Promote Participation In Climate Mitigation: Border Carbon Adjustments Versus Uniform Tariff Measures

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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)

  • QIAO-MEI LIANG

    (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)

  • CE WANG

    (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)

  • HUA LIAO

    (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)

  • YI-MING WEI

    (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)

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.

Suggested Citation

  • 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 & Yi-Ming Wei, 2020. "Impacts Of Mechanisms To Promote Participation In Climate Mitigation: Border Carbon Adjustments Versus Uniform Tariff Measures," Climate Change Economics (CCE), World Scientific Publishing Co. Pte. Ltd., vol. 11(03), pages 1-26, August.
    • Handle: RePEc:wsi:ccexxx:v:11:y:2020:i:03:n:s2010007820410079
    DOI: 10.1142/S2010007820410079
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    Cited by:

    1. Banerjee, Suvajit, 2021. "Conjugation of border and domestic carbon adjustment and implications under production and consumption-based accounting of India's National Emission Inventory: A recursive dynamic CGE analysis," Structural Change and Economic Dynamics, Elsevier, vol. 57(C), pages 68-86.
    2. Jiang, Hong-Dian & Purohit, Pallav & Liang, Qiao-Mei & Dong, Kangyin & Liu, Li-Jing, 2022. "The cost-benefit comparisons of China's and India's NDCs based on carbon marginal abatement cost curves," Energy Economics, Elsevier, vol. 109(C).

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