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Carbon Letters

, Volume 29, Issue 1, pp 99–107 | Cite as

Feasibility analysis of China’s carbon taxation policy responding to the carbon tariff scheme of USA

  • Linrong Zhang
  • Dan Jiang
  • Muhammad ImranEmail author
Original Article
  • 4 Downloads

Abstract

Aimed at determining whether China’s active carbon emission reduction policy can respond to the threat of carbon tariff of the USA, this study proposed two kinds of carbon tax schemes for the USA and China, same carbon tax policy and a differential carbon tax policy. Four scenarios are set: the USA only charging carbon tax on domestic products; the USA charging carbon tax on domestic products and carbon tariff on imported products from China; the USA and China taking the same carbon tax policy on domestic products; the USA and China taking the differential carbon tax policy on their domestic products. Global Trade Analysis Project Energy model is applied to discuss whether China’s active measure to reduce carbon emissions can be an effective solution to the threat of carbon tariff of the USA. The research results show that China’s active measure of the same carbon tax policy as the USA is not effective to cope with carbon tariff of the USA. However, it is an effective measure to take a differential carbon tax policy. The specific policy implications of the study are discussed in conclusion.

Keywords

Carbon tariff GTAP-E model Active carbon emission reduction Differential carbon policy 

Notes

Acknowledgements

This research is supported by the National Natural Science Fund (71572071), the China Postdoctoral Science Foundation funded Project (2015M571708), the Research and Practice Project of Teaching Reform of Graduate Education in Jiangsu Province (JGZZ1_056), the Advanced Talent Project of Jiangsu University (09JDG050 and 14JDG202) and the Postgraduate Research and Practice Innovation Program of Jiangsu Province (KYCX17_1742).

Compliance with ethical standards

Conflict of interest

No potential conflict of interest relevant to this article was reported.

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Copyright information

© Korean Carbon Society 2019

Authors and Affiliations

  1. 1.School of Finance and EconomicsJiangsu UniversityZhenjiangPeople’s Republic of China
  2. 2.School of ManagementJiangsu UniversityZhenjiangPeople’s Republic of China

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