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GTAP Resource #5339

"PARIS AFTER TRUMP: CARBON TARIFFS RELOADED"
by Böhringer, Christoph and Thomas Rutherford


Abstract
With his announcement to pull the US out of the Paris Agreement US President Donald Trump has snubbed the international climate policy community. Key remaining parties to the Agreement such as Europe and China might call for carbon tariffs on US imports as sanctioning instrument to coerce US compliance. Our analysis, however, reveals an inconvenient insight for advocates of carbon tariffs: Given the possibility of retaliatory tariffs across all imported goods, carbon tariffs do not constitute a credible threat for the US. A tariff war with its main trading partners China and Europe might make the US worse off than compliance to the Paris Agreement but China, in particular, should prefer US defection to a tariff war.


Resource Details (Export Citation) GTAP Keywords
Category: 2017 Conference Paper
Status: Published
By/In: Presented at the 20th Annual Conference on Global Economic Analysis, West Lafayette, IN, USA
Date: 2017
Version: 1
Created: Böhringer, C. (4/15/2017)
Updated: Böhringer, C. (6/18/2017)
Visits: 1,324
- Climate change policy
- Trade and the environment
- Asia (East)
- European Union
- North America


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