Research On Economic Effects Of Carbon Tariffs Based On GTAP Model

With the global economic growth and the population expansion, the demands for a variety of consumer goods are increased in the world. The rapid economic expansion is accompanied by ecological damage. In recent years, for the unfavorable factors caused by a variety of vehicle exhaust emissions, chemical pollution, acid rain and temperature rising harm to human, people have to attach importance to the coordinated development of the environment and economies. Low-carbon economy came into being.Through literature researching on domestic and foreign scholars, we can conclude that their researches on new trade barriers-barriers of carbon are mostly from focusing on theory method. Although to write how carbon tariffs be affected on international trade from the angle of the new barriers to trade is also considerable, the majority are single theory or general equilibrium approach to analyze. There have not enough researchers to use the combination of theoretical and empirical method. And in the sector of theory analysis, most people use Partial Equilibrium Approach. They ignore the General Equilibrium Approach. Regarding this factor, I add in General Equilibrium Approach to research the welfare changes.In this paper, the theoretical analysis and empirical analysis of the method are all applied, I analysis the new development of international trade on low-carbon economy context from the perspective of New barriers to trade. The writer mainly applies theoretical analysis in Part IV, proving to analyze the carbon tariffs. Carbon tariffs belong to non-tariff barriers, First use theoretical analysis to research the economic impact of carbon tariffs from two sides:the country which imposes carbon tariffs (the country imports high carbon products) and the country be levied carbon tariffs (the country exports high carbon products) by the drawing analysis, including the analysis of the welfare impact of the two countries, the export volume of high-carbon products, production, price changes, as well as bilateral terms of trade changes. I apply GTAP (Global Trade Analysis Project) tool in empirical analysis to prove if the part IV are right.The text of this paper is mainly divided into five parts:The first part is the introduction, including research significance, research background, writing ideas and innovation, shortages.The second part is the emergence and development of low-carbon economy. it is the background of carbon tariffs. Analysis of the rising and development of low-carbon economy, you can see that the generation and the rise of low-carbon economy is a product of history.The third part is the emergence of new trade barriers in the era of low-carbon economy. The main purpose of this chapter is to propose a carbon tariff has become a new trade barrier. This chapter firstly analyzes the development and change of trade barriers. This paper gives the new features of new trade barriers through the analysis on the changes of this development. Then, this chapter explores the emerging carbon barriers in the new trade, including barriers carbon footprint, carbon labeling and carbon tariffs, we can get that the affects of imposing carbon tariffs is more prominent.Next, the fourth part:The economic effects of carbon tariffs-based on importing high-carbon products country is the large country case, this part is one of the point in this article. This section analysis the effect of carbon tariffs on both sides, including social welfare, world prices, trade volume etc.Part V is also the focus of this article, this part mainly follows the empirical analysis, in order to verify if the results of the fourth part is correct, the empirical analysis applies the GTAP analysis tools to research.Part VI is to propose the countermeasures of China from the international and national levels in era of low-carbon economy. These suggestions have a positive meaning about the smooth development of China’s international trade.Through researches, we can get the following conclusions:if a major country of importing high-carbon products imposing carbon tariffs on exporting countries which does not meet the low-carbon standard, it will lead to the world market prices of high-carbon products decline, the volumes of trade are reduced, the export volume of high-carbon fells down, net welfare losses; importing domestic prices are increased, imports volume may be declined, and the level of benefits may be declined or not. Under studying in the related literature of domestic and foreign scholars, this article have its own innovations, certainly, because of the author’s limited knowledge, there are so many shortages. The innovation of this paper is researching methods. This article applies the combination of theoretical and empirical approaches to analyze the impact of carbon tariffs on international trade in era of low-carbon economy from the perspective of carbon tariffs, using evidence to verify the theoretical results, In the theoretical analysis, author researches this item with partial equilibrium analysis and general equilibrium analysis. Do theory combined with empirical, partial equilibrium analysis contacted with general equilibrium analysis.The disadvantage is that:First, since the collection of carbon tariffs is on the stage of trying and preparing, and research of carbon tariffs is also still in the exploratory stage, there are still so many questions on its collection problems and prospects. Therefore, the study of carbon tariffs certainly has some blind spots, and this article is yet should be depth. At the same time, due to the limited level of knowledge of the author, I have many ill-considered in the theory of writing. In addition, regarding empirical analysis, as the data is hard to get and the relatively version of database is out of date. The data needs to be updated.