The Potential Impact Of Carbon Tariffs On Zhejiang 's Foreign Trade

Carbon tariffs refer to a kind of tariffs levied on the embodied carbon of energy-intensive imports from non-abating regions assessed at the prevailing carbon price. This idea as a form of indirect regulation of foreign emission sources has gained many supporters in Organization for Economics Co-operation and Development (OECD) regions considering unilateral climate policies.China is one of the biggest exporter countries in the world, and its economy development depends greatly on energy-intensive consumption, investment and exports. Accordingly, if carbon tariff policy is implemented, China’s exporting trade can be seriously shocked. Similarly, Zhejiang Province, as one of the greatest contributors to China’s export trade, must be shocked badly.This paper proposes an analysis framework of carbon tariffs’ potential impacts on export trade. Specifically, this paper first discusses the nature and general influences of carbon tariffs based on principles of demands and supplies; then presents a possible computation model of embodied carbon using Input and Output Analysis (IOA); next analyzes negative and positive influences on international trade, technology development and industrial transformation; lastly concludes and proposes political suggests.