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Assessment of Environmental Impacts Embodied in U.S.‐China and U.S.‐India Trade and Related Climate Change Policies
Author(s) -
Du Xiaodong,
Dong Fengxia,
Hayes Dermot J.,
Brown Tristan R.
Publication year - 2011
Publication title -
american journal of agricultural economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.949
H-Index - 111
eISSN - 1467-8276
pISSN - 0002-9092
DOI - 10.1093/ajae/aaq144
Subject(s) - china , agriculture , library science , political science , state (computer science) , citation , geography , archaeology , law , computer science , algorithm
We empirically investigate the GHG emissions embodied in the bilateral trade between the United States and China and the United States and India and their countryspecific and global environmental impacts. In order to address the concerns of “levelplaying-field” and carbon leakage associated with domestic carbon pricing scheme, various border carbon adjustments have been proposed in recent U.S. climate change legislation. Employing GTAP-E model, this study examines how and to what extent the proposed carbon tariffs and export subsidies potentially affect bilateral trade flow, domestic production, and the GHG emissions. Results indicate that carbon tariff effectively alleviates the impact of domestic carbon tax on vulnerable domestic industries and slightly raises their output and GHG emissions. In addition, it is also evident that a combined or full border adjustment policy has bigger impacts than an individual policy.