Research Progress of the International Carbon Tariff: A Review

Abstract

Under the constraints of the target peak carbon dioxide emissions and carbon neutrality, how the international carbon tariff can be levied have become an important question for scholars and research institutions all over the world. This paper aimed to comprehensively sort the relevant literature on the Carbon Border Adjustment Mechanism from an economic perspective. Based on defining the concept connotation and extension of carbon tariff, we summarized and determined the price mechanism, institutional mechanism, and coordination mechanism of the carbon tariff, and analyzed the impact of carbon tariff on the economic environment and other fields. Further, this paper makes an international comparison of the existing reasonably operable carbon tariff, points out the focus and direction of the next research, and strives to provide valuable experience and theoretical reference for the innovative practice of building the international Carbon Border Adjustment Mechanism.


Keywords: carbon tariff, border tax adjustment, connotation and extension, mechanism design, economic impact

References
[1] Chen Z. Technical barriers to trade: mechanism characteristics, policy effect, and corresponding measures [ J]. International Trade Issues. 2004;11:26–30.

[2] Renxiang L. The relevant theoretical mechanism of carbon tariff and its economic influence and enlightenment. Productivity Research. 2011;7:4-219.

[3] Ozbirn JL, The Climate Security Act of 2008 and other Carbon-based Trade Restrictions: Are They Legal under International Law. Loyola University: Chicago International Law Review; 2009.

[4] Kendall K. Carbon taxes and the WTO : carbon charge without trade concerns. Ariz J Int Comp Law. 2012.

[5] Honeysuckle H. On the legality of border tax adjustment under the GATT / WTO framework and on China’s strategy to deal with border tax adjustment. Economic system Reform. 2015;2:162-166.

[6] Chen H. The practical dilemma and response of climate change system. Law. 2015;1:25–34.

[7] Chen Y, He Y. On the International legitimacy of the EU carbon tariff. Theoretical Monthly. 2014;9:133–7.

[8] Chen H. Legiality analysis of carbon tariff takes the suitability of border tax adjustment. Legal Business Research. 2013;30(4):87–94.

[9] Bin C. The dilemma and development of carbon tax border adjustment. Tax and Economics. 2011;1:104–7.

[10] Yong L. Trade disputes and settlement that may be caused by carbon tariffs under the WTO framework. Law. 2010;7:76–84.

[11] Ladly SD. Border carbon adjustments, WTO law and the principle of common but differentiated responsibilities. International Environmental Agreements: Politics, Law and Economics. 2012;12(1).

[12] Ma Y, Zhan JY, Lin G. The Global Trade Dispute Study under the WTO Framework [ J]. International Trade. 2020;(01):78–88.

[13] Goulder LH. Carbon tax design and US industry performance. Tax Policy Econ. 1992;6:59–104.

[14] Matsumoto K, Fukuda T; Matsumoto and T Fukuda. Environmental and economic analyses of the carbon tax based on the imputed price using applied general equilibrium model: taxation on the upper industrial sectors. Environ Econ Policy Stud. 2006;8(1):89–102.

[15] LuShuling. Bai Yanfeng.International practice of carbon tax and its enlightenme nt for China to achieve the goal of “carbon peak” by 2030 [ J]. International Taxation. 2021;(12):21–8.

[16] World Bank. State and Trends of Carbon Pricing 2022. Washington: World Bank; 2020.

[17] Hubler. Can Carbon Based Import Tariffs Effectively Reduce Carbon Emission. Kiel Institute for the World Economy: Dusternbrooker; 2009.

[18] Mander T, Veenendaal P. Border Tax Adjustments and the EU-ETS-A Quantitative Assessment. CPB Document 2009;1(1):36.

[19] Dong Y, Whalley J; DONG Y. WHALLEY J. Carbon motivated regional trade arrangements: analytics and simulations. Econ Model. 2011;28(6):2783–92.

[20] Bohringer C, Balistrer EJ, Rutherford TF. The Role of Border Carbon Adjustment in Unilateral Climate Policy: Overview of an Energy Modeling Forum Study. Energy Econ. 2012;34(12):97–110.

[21] Branger F, Quirion P. Would Border Carbon Adjustments Prevent Carbon Leakage and Heavy Industry Competitiveness Losses? Insights from a Meta-analysis of Recent Economic Studies. Ecol Econ. 2014;99:99.

[22] Trade BC, Change C. Environmental, Economic and Ethical Perspectives on Border Carbon Adjustments. Ethics Policy Environ. 2013;16(1).

[23] United Nations, A European Union Carbon Border tariff: Implications for developing countries. United Nations Conference on Trade and Development; 2021; New York.

[24] CICC Research Institute. Quantitative analysis of the impact of EU carbon border regulation mechanism on Chinese economy and global carbon emission reduction. Beijing: In-depth Research; 2021.

[25] Qingxin B, Yunpeng D. The essence and impact of carbon tariffs and China’s countermeasures. Administrative management reform, 2022 (01): 37-44.

[26] Zeng E, Tan X, Yi W, Gao J. The influence of EU carbon border regulation mechanism on China under the background of carbon neutrality. Environmental Management in China. 2022;14(1):31–7.

[27] Lowe S. The EU’s Carbon Border Adjustment Mechanism: How to Make It Work for Developing Countries. Centre for European Reform; 2021.

[28] Jiang T, and Haiyan X. The nature and influence of the EU carbon border adjustment mechanism and China’s response measures. International Trade. 2021;(9):38–44.

[29] Liqiang Y, Man M. GTAP simulation analysis of the impact of carbon tariff on China’s export trade. Journal of Shanghai University of Finance and Economics. 2011;13(5); 77-83

[30] Lin B, Li A. Impact of carbon tariffs on developing countries. Financial Research. 2010;(12):1–15.

[31] Yuan L, Lei Z, Ying F. The impact of market emission reduction policy on China’s steel industry is based on the analysis of partial equilibrium modelling. Industrial Technology and Economy. 2016;35(1):139-153.

[32] Zhuang, Guiyang, Xianli Z. The European Green Agreement: Connotation, Influence and Reference Significance. International Economic Review. 2021;(1):116-133.

[33] Hui C. European Union carbon border adjustment mechanism: legality dispute and influence. European Studies. 2021;39(6):75-94.

[34] Hua J, Siyi W, Lianhong L. Influence and countermeasures of the EU carbon border regulation mechanism. Environmental Protection. 2022;50(7):34-37.

[35] Li W, Zhang J. Analysis of the influence of carbon tariff on Chinese cement product export. Hebei Enterprise. 2022;(4):32–4.

[36] Guangwei C, Mingyu H. Study on the impact of EU carbon tariff levy on China’s petrochemical industry. Contemporary petroleum and Petrochemical. 2021;29(12):6- 32.

[37] Pan M. The impact of “carbon tariff” on China’s steel exports. Metallurgy Management. 2021;(20):45–9.

[38] Hongying Y. The Impact of the EU carbon tariff on the electrical appliance industry. Electrical appliance industry. 2021;1(1):51-53.

[39] Longfeng DZ, Fan B, Jia Z, Chao L. Impact and response analysis of the EU carbon border regulation mechanism. Environmental Management in China. 2022;14(02):43–8.

[40] Zhou J, Ying C. carbon tariff and its impact on our country. China Finance. 2021;(19):61–3.

[41] Barde, JP. Green Tax Reforms in OECD Countries: An Overview. OECD Report 2004.

[42] Dresner S, Jackson T, Gilbert N. History and social responses to environmental tax reform in the United Kingdom. Energy Policy. 2006;34(8):930–9.

[43] Bing L, Yang Ali Y. The legality of carbon tariffs under the framework of international climate law views the principle of common but differentiated responsibilities. Strait law. 2013;(2):41-47.