Analysis Of The Effect Of Carbon Tariffs On The China’s Export Trade Competitiveness

The Copenhagen world climate change conference made more and more countries andregions understand the importance and urgency to cope with climate change and develop lowcarbon economy. Under such an international contextual, in order to deal with the globalwarming causing by the green house gas emissions, Europe and the United States and otherwestern developed countries attempt to conserve energy and reduce emissions through carbontariffs. The current level of economic development in developing countries is still not enoughto enforce strict emission standards, which means that the system of carbon tariff set bydeveloped countries will make most of developing countries become the levy object. This willhave huge effect on the export and the entire national economy of developing countries. As anew trade barrier, Carbon tariffs will become the way that western developed countriesimplement trade protection. China should actively respond to challenges brought by carbontariffs and formulate related policies to meet the age of the carbon tariffs.Based on the above practical background, this article briefly introduces the studybackground, contents and methods and systematically reviews the related research of the issueof carbon tariffs and its effect on expert trade competitiveness. Then it introduces thetheoretical foundation and the main research method for this paper. The theoretical foundationpart defines the concept and classification of carbon tariffs.As the main research method, thispart introduces computable general equilibrium model of CGE and global trade analysissoftware GTAP7.0. This part also using the partial equilibrium model analyzes the economiceffect of carbon tariff. And it also analyzes the present situation of China’s export trade andcarbon emissions. First of all, this part briefly summarize the present situation of our countryexport trade and China’s energy consumption and carbon emissions by using some indicators,such as energy consumption, total amount of carbon emissions, etc; Then by constructingeconometric model, the part research the correlative relationship between our country exporttrade and quantity of carbon emissions. This paper mainly analyzes the influence of China’sexport competitiveness caused by the developed countries imposing carbon tariffs usingGTAP7.0database. It calculates China’s export industry sector exports, sales prices and termsof trade and the trade balance using the RUNGTAP software. The empirical results show thatour country export commodities exports fell after the European Union to impose carbon tariffs and the export prices rise. As for the terms of trade, obviously, it is getting worse. The resultsalso show that the trade surplus is reducing. Carbon tariffs would have a negative impact onChina’s export trade competitiveness. At last, it introduces the countermeasures andsuggestions to correspond carbon tariff.