The Research Of The Effect Of Carbon Tariff Imposing On China’s Export Trade

The concept of carbon tariff is first proposed by French President Jacques Chirac.The purpose of the special carbon-emitting tax on the non-compliers of Kyoto protocol isto avoid unfair competition. The old-fashioned protectionism is becoming the target ofpublic criticism under WTO. The imposing of carbon tariff brings opportunities for UnitedState and Europe by means of improving the international balance of payments andoffering long term support for economic growth. But for China which is anexport-oriented country, the imposing of carbon tariff certainly will affect its overallmacroeconomic situation. So it is meaningful to study the relationship between carbontariff and China’s export trade.Through analysis of the influence to our export trade caused by carbon tariff, thethesis indicates that big importers will force exporters to bear a part of cost when imposingcarbon tariff by “shifting effect” which not only reflects in quantity but also in price.Although carbon tariff is a negative element for our country industry and welfare, theimposing may will have a positive impact in the long time. In addition, by the empiricalanalysis of export figures and carbon emission, the research suggests export commoditieswhich contain a large number of implicit carbon are just the target of carbon tariff. On thebasis of analysis mentioned above, the thesis then uses Bertrand model to get theconclusion that when the imposing of carbon tariff reduces our export earnings, thedecreasing of carbon emission can not be guaranteed at the same time. The variation ofcarbon emission depends on the rationality of the design of carbon tariff. Moreover, themodel analysis also shows that reduction of carbon emission contributes to the increasingof export profit.