IMPACTS OF MECHANISMS TO PROMOTE PARTICIPATION IN CLIMATE MITIGATION: BORDER CARBON ADJUSTMENTS VERSUS UNIFORM TARIFF MEASURES

• DOI: 10.1142/s2010007820410079
• Publication Date: 2020-05-18T09:34:01Z
• Authors: 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
• Keywords: Carbon leakage; Carbon fibers

Because free-riding behavior is an inherent characteristic of climate change, how to protect the economic benefits emission reduction regions and prompt noncooperative region join coalition particularly important. In this study, we use a global multi-region multi-sector CGE model compare impacts border carbon adjustment (BCA) two unified tariff mechanisms based on different implementation principles USA. The results show that BCA more effective in reducing leakage USA than uniform mechanisms. However, for GDP welfare losses, scenario Tariff-carbon-reduction greater losses USA, which conducive prompting implement policies measures. Finally, sensitivity analysis price levels key substitution elasticity further confirmed results.