Influences of border carbon adjustments on china’s foreign trade

Zhou Lingling, Gu Alun, Teng Fei, He Jiankun

Research output: Contribution to journalArticlepeer-review

Abstract

The EU, the United States and other economies, with the intention to implement unilateral trade measures Border Carbon Adjustments, impose emission reduction pressure on developing countries. Once implemented, the measures will have great impact on China’s foreign trade. Using the input-output table in 2007, this paper had analyzed the influences on China’s foreign trade as a whole and sub-sectors in three tax rates scenarios. The results showed that the tariff level of China’s exports will increase by 3.6%–6.3% if the tax was levied on exports embodied emissions, and by 1.0%–1.7% if levied on export direct emissions. In 2007, the former total amount of carbon tax was about US$42.6–73.0 billion, 4 times that of the latter. Based on export embodied emissions, sectors largely influenced were non-traditional energy intensive ones, such as textile, et al. These sectors should be encouraged to carry out industrial upgrading, raising the value-added of export goods, and reducing their embodied emissions by reduction of energy intensity. Taking into account of the complexity of data collection, the tax levied on products direct emission is more operational. The results showed that the five top sectors most affected were other chemical materials, processing of petroleum and nuclear fuel, coking, smelting and rolling of ferrous metal and textile. Most of them were energy intensive sectors. Therefore, adjusting export products structure, and controlling too fast development of energy intensive industries are also important strategies in China.

Original languageEnglish
Pages (from-to)94-100
Number of pages7
JournalChinese Journal of Population Resources and Environment
Volume10
Issue number2
DOIs
Publication statusPublished - 2012
Externally publishedYes

Keywords

  • Border carbon adjustments
  • Climate change
  • Input-output model
  • International trade

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