A Political And Economic Study On Carbon Tariff

In June,2009, the U.S. House of Representatives passed the bill of carbon emissions quota and trade at the background of global warming, energy crisis and financial crisis. The Bill suggested that the U.S. government will impose carbon tariff on importing high energy consumption products since 2020, and the target countries include those who do not take measures to limit carbon emission. The Bill immediately arose a stormy discussion around the world for different economic interests. Developed countries like France took a positive attitude toward carbon tariff, while developing countries like China and India were strongly against the Bill.Carbon tariff, as a new form of international trade barrier, has many features that is different from traditional trade barriers, for instance, the uncertainty of its legitimacy, the nominal rationality and the actual unfairness. It is the peculiarity of carbon tariff that will definitely result in different influence on each economic subject. To developed countries that impose carbon tariff will effectively protect their industries, promote their recovery from financial crisis and inhibit developing countries from economic development. To developing countries, carbon tariff will be a heavy hit to their economy, as developing countries are in the middle phase of industrial development, heavily relying on industries to drive their economy with industrial manufactured goods as the mainstay of their exports. However, developing countries have limited ability in energy-saving and emission-reduction for lack of capital and technology. Therefore, carbon tariff will bring unbearable pressure for them.In the perspective of economy, carbon tariff serve to protect domestic industries and facilitate economic recovery. In the perspective of politics, carbon tariff will help strengthen their influence in the world. With the deepening of low-carbon economy, many international negotiations on climate change have been held. Developed countries are in such a hurry to find out a new vantage point in economic development. Carbon tariff is the very thing which can help developed countries shake off their guilty of pollution, and bring the good reputation of environmental protection. It can be said that carbon tariff is the product of developed countries by carefully planning.China is one of the large developing countries, with coal as its main energy resource. China is one of the important suppliers of industrial manufactured goods to developed countries, once carbon tariff is imposed, China will become the main victim. In terms of industrial structure, the secondary industry is the main source to drive the economic development. However, carbon tariff will have bad influence on the development of the secondary industry. In terms of export, the export of industrial manufactured goods was 95%of the whole export amount in 2008. Obviously, carbon tariff will be a heavy blow to China's export. In terms of trade policy, Chinese government needs to find urgent solutions to problems brought by carbon tariff, for example, by making adjustment of tax policy, preventing high energy consumption products from other countries to China. Whatever, we have to admit that, in the long run, carbon tariff will play a positive role in protecting the deteriorating environment and promoting the optimization of industrial structure in developing countries.China should bravely fight against the carbon tariff proposal. What's more, positive measures should also be taken to response to it. Chinese government should facilitate the construction of new energy, and develop the low carbon economy by making policy and encouraging measures. Meantime, China needs to establish "anti-carbon tariff Union" with other developing countries in order to strive for more verbal and economic rights. Chinese enterprises should implement the "going out" strategy, learn, absorb and make adjustment of foreign advanced technology of energy saving and commission reduction. In order to reduce the damage from carbon tariff imposed by some countries, enterprises are supposed to make diversified developing strategy in different foreign markets. With carbon trading and CDM project, enterprises should make efforts to gain financial and technological support from developed countries. These measures could help companies develop in a sustainable way.This passage gives a general introduction to readers including the definition, background, basic features, and the essence analysis of carbon tariff. From chapter 3, it gives a deep analysis of carbon tariffs, which elaborates the different economic influence of carbon tariff on each entity. This chapter is also the theoretic basis of the paper. Chapter 4 gives some examples of different attitude toward carbon tariff. With political economy analysis, the author gives several essential reasons behind the different attitude. The last two chapters explain the influence of carbon tariff on Chinese economy and propose suggestions:firstly, Charter 5 tells readers the current situation of carbon emission in China. Then it analyses the influence of carbon tariff on industrial structure, export and tax policy. Finally, Chapter 5 makes suggestions for both government and enterprises.