The Potential Impact Of Carbon Tariffs On China’s Animal Husbandry Products’ Export Trade

In recent years, China’s animal husbandry products have a greatly comparative advantage in the international market. However, meat and dairy products, which belong to animal husbandry products contain the most intensive greenhouse gas, have the biggest impact on the environment. According to the Food and Agriculture Organization of the United Nations, meat production emissions are up to18%of the world’s emissions of greenhouse gas. Under the background of the environmentalists vigorously advocate low carbon and carbon reduction, it is quite popular that many countries implement trade barrier on the imported products in order to protect their domestic industries, which is exactly in the name of green environmental protection. They have a great and far reaching significance on the export of China’s animal husbandry products.Descriptive statistics based on the current situation of China’s export trade of animal husbandry products, this paper uses COMTRADE Database to calculate the implicit carbon emissions of animal husbandry products in China and the main export areas. In statistics,with the reference to the Harmonized Commodity Description and Coding System (the HS for short),this paper decides its Scope of export of animal husbandry products. By using of "Leontief inverse matrix", known as the total consumption coefficient matrix, i.e. the sum of direct consumption coefficient and the indirect consumption coefficients, this paper would obtain the implicit carbon emission of animal husbandry products exports in China.Considering on both qualitative and quantitative analysis, this paper is to verify the negative influence of levying carbon tariffs on the export of China’s animal husbandry products.In qualitative analysis, based on the Pigou Tax Theory and the Polluter-pays Principle, this paper analyses both positive and negative influence of carbon tariffs on the export of animal husbandry products. On the other hand, this paper applying the Global Trade Analysis Project (GTAP6), and taking the model structure of no-government intervention in the open economy. In applying GTAP6is to make a quantitative analysis on the impact of carbon tariffs on animal husbandry products. GTAP6for data aggregation is to be divided into five regions and seven departments. The five areas includes China, the United States, Japan, European Union and other countries, while the Seven departments are live animals, dairy products, meat, wool and silk, animals products and other agricultural products.According to the collection of the strength of the carbon tariffs can be divided into low (10Dollar/ton), intermediate (30Dollar/ton) and high-grade (60Dollar/ton), it is concluded that different carbon tax on China’s exports animal husbandry products, production and price, trade environment and the welfare level of GDP are would be affected at different level.This paper concludes that carbon tariffs make the export volume decreased, the export prices increased, the domestic outpute clined, the trade conditions deteriorated, and the social welfare reduced. The findings are originated from the sixth edition database of GTAP and RunGTAP software for simulation and anaysis. Thus, the carbon tariffs would not be beneficial to China. From the perspective of our country, the government should establish the policy about low carbon emissions of the animal husbandry industry, improve the animal husbandry’s science and Technology innovation and improve the environment of the animal husbandry industry.From the aspect of animal husbandry enterprises, they should establish low and effective mode, export different products depend on the special need and strengthen the awareness of carbon emission reduction.