Abstract

http://ssrn.com/abstract=1503817
 
 

Citations (20)



 
 

Footnotes (33)



 


 



Reconciling Climate Change and Trade Policy


Aaditya Mattoo


World Bank - Development Research Group (DECRG)

Arvind Subramanian


International Monetary Fund (IMF); Center for Global Development

Dominique Van der Mensbrugghe


World Bank

Jianwu He


World Bank

November 1, 2009

World Bank Policy Research Working Paper No. 5123

Abstract:     
There is growing clamor in industrial countries for additional border taxes on imports from countries with lower carbon prices. The authors confirm the findings of other research that unilateral emissions cuts by industrial countries will have minimal carbon leakage effects. However, output and exports of energy-intensive manufactures are projected to decline potentially creating pressure for trade action. A key factor affecting the impact of any border taxes is whether they are based on the carbon content of imports or the carbon content in domestic production. Their quantitative estimates suggest that the former action when applied to all merchandise imports would address competitiveness and environmental concerns in high income countries but with serious consequences for trading partners. For example, China’s manufacturing exports would decline by one-fifth and those of all low and middle income countries by 8 per cent; the corresponding declines in real income would be 3.7 per cent and 2.4 per cent. Border tax adjustment based on the carbon content in domestic production, especially if applied to both imports and exports, would broadly address the competitiveness concerns of producers in high income countries and less seriously damage developing country trade.

Number of Pages in PDF File: 46

Keywords: Climate Change Mitigation and Green House Gases, Climate Change Economics, Environment and Energy Efficiency, Energy and Environment, Transport Economics Policy & Planning

working papers series


Download This Paper

Date posted: November 11, 2009  

Suggested Citation

Mattoo, Aaditya and Subramanian, Arvind and van der Mensbrugghe, Dominique and He, Jianwu, Reconciling Climate Change and Trade Policy (November 1, 2009). World Bank Policy Research Working Paper Series, Vol. , pp. -, 2009. Available at SSRN: http://ssrn.com/abstract=1503817

Contact Information

Aaditya Mattoo (Contact Author)
World Bank - Development Research Group (DECRG) ( email )
1818 H Street, N.W.
Room MC 3-327
Washington, DC 20433
United States
202-458-8047 (Phone)
202-676-9810 (Fax)
HOME PAGE: http://econ.worldbank.org/staff/amattoo
Arvind Subramanian
International Monetary Fund (IMF) ( email )
700 19th Street NW
Washington, DC 20431
United States
Center for Global Development
2055 L St. NW
5th floor
Washington, DC 20036
United States
Dominique Van der Mensbrugghe
World Bank ( email )
1818 H Street, N.W.
Washington, DC 20433
United States
202-473-0052 (Phone)
202-522-1159 (Fax)
HOME PAGE: http://econ.worldbank.org/staff/dvandermensbrugghe
Jianwu He
World Bank
1818 H Street, NW
Washington, DC 20433
United States
Feedback to SSRN


Paper statistics
Abstract Views: 1,029
Downloads: 226
Download Rank: 30,822
Citations:  20
Footnotes:  33

© 2014 Social Science Electronic Publishing, Inc. All Rights Reserved.  FAQ   Terms of Use   Privacy Policy   Copyright   Contact Us
This page was processed by apollo3 in 0.360 seconds